Q4 Will Be More Benign For The NBFC Sector, Says L&T Finance Holdings
L&T Finance Holdings Ltd. expects the fourth quarter to be much more benign than the company’s earlier estimate, its Managing Director and Chief Executive Officer Dinanath Dubhashi said.
“Some confidence building statements by the regulator and the government has helped,” he said, adding that the company’s lending business book on a yearly basis saw a 23 percent growth to Rs 93,708 crore in the December-ended quarter.
This, according to Dubhashi, indicates that the confidence in the sector is making a comeback after crisis-hit IL&FS defaulted on its debt obligations.
I believe it was a crisis of confidence than any real crisis in the real sector.Dinanath Dubhashi, managing director & chief executive officer, L&T Finance Holdings
Banks had taken some “good measures” by buying portfolios of some companies and contrary to rumours, no defaults had happened in November, Dubhashi told BloombergQuint. “As other non-banking financial companies also declare the results, the confidence should come back even more.”
- The company’s net profit was up 80.8 percent to Rs 579.9 crore in the December-ended period compared to the same time last year.
- Net interest income surged 55.1 percent to Rs 50.3.4 crore, year-on-year.
The finance lender said its fourth quarter will largely be on the lines of the third quarter except in case of rural business which experienced maximum disbursement owing to the festive season. “Year-on-year, the good growth should continue.”
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