L&T Finance holdings unifies entities
ECONOMY & POLICY

L&T Finance holdings unifies entities

L&T Finance Holdings (LTFH), the non-bank lending arm of Larsen & Toubro (L&T), a diversified engineering-to-IT conglomerate, has successfully integrated all its financial services entities, forming a unified lending entity. This strategic move consolidates lending companies, namely L&T Finance, L&T Infra Credit, and asset manager L&T Mutual Fund Trustee, into LTFH.

To align with its widely recognised market identity, the company plans to seek approval from the Reserve Bank of India (RBI) for a name change to L&T Finance, as confirmed by CFO Sachinn Joshi.

This consolidation brings about significant advantages, reducing operating costs and liberating management bandwidth previously dedicated to various committee and board meetings. Notably, it releases Rs 30 billion from the former infrastructure debt fund, L&T Infra Credit, previously invested in liquid assets like government securities. These funds, now redirected towards retail lending, are expected to yield returns of 15%, a substantial increase from the 6.5-7% they were generating. The improved utilisation of liquidity and cost efficiencies could potentially elevate the company's return on assets (RoA) to 3.5%, up from the current 3.4%, and increase the return on equity (RoE) ratio to five.

Furthermore, the merger aligns with the company's strategic shift towards retail loans, constituting 88% of the portfolio, surpassing the 80% target set for the end of fiscal 2026. With a halt in disbursing loans to infrastructure and real estate, the company aims to achieve 90-95% retail loans.

CEO Dinanath Dubhashi emphasised that the merger is the culmination of a seven-year process, streamlining the number of NBFCs from eight to a single, more cohesive entity. He anticipates that this consolidation will unlock new growth avenues, foster innovation, and contribute to long-term success, thereby enhancing governance and creating sustainable value for stakeholders.

The unified entity also addresses regulatory considerations, ensuring compliance with RBI regulations. Notably, the merger avoids the creation of two separately listed financial entities, a significant factor given the RBI's scale-based regulations mandating compulsory listing for upper layer NBFCs until FY25. This strategic move positions LTFH for enhanced operational efficiency and regulatory adherence, paving the way for continued success in the financial services sector.

L&T Finance Holdings (LTFH), the non-bank lending arm of Larsen & Toubro (L&T), a diversified engineering-to-IT conglomerate, has successfully integrated all its financial services entities, forming a unified lending entity. This strategic move consolidates lending companies, namely L&T Finance, L&T Infra Credit, and asset manager L&T Mutual Fund Trustee, into LTFH.To align with its widely recognised market identity, the company plans to seek approval from the Reserve Bank of India (RBI) for a name change to L&T Finance, as confirmed by CFO Sachinn Joshi.This consolidation brings about significant advantages, reducing operating costs and liberating management bandwidth previously dedicated to various committee and board meetings. Notably, it releases Rs 30 billion from the former infrastructure debt fund, L&T Infra Credit, previously invested in liquid assets like government securities. These funds, now redirected towards retail lending, are expected to yield returns of 15%, a substantial increase from the 6.5-7% they were generating. The improved utilisation of liquidity and cost efficiencies could potentially elevate the company's return on assets (RoA) to 3.5%, up from the current 3.4%, and increase the return on equity (RoE) ratio to five.Furthermore, the merger aligns with the company's strategic shift towards retail loans, constituting 88% of the portfolio, surpassing the 80% target set for the end of fiscal 2026. With a halt in disbursing loans to infrastructure and real estate, the company aims to achieve 90-95% retail loans.CEO Dinanath Dubhashi emphasised that the merger is the culmination of a seven-year process, streamlining the number of NBFCs from eight to a single, more cohesive entity. He anticipates that this consolidation will unlock new growth avenues, foster innovation, and contribute to long-term success, thereby enhancing governance and creating sustainable value for stakeholders.The unified entity also addresses regulatory considerations, ensuring compliance with RBI regulations. Notably, the merger avoids the creation of two separately listed financial entities, a significant factor given the RBI's scale-based regulations mandating compulsory listing for upper layer NBFCs until FY25. This strategic move positions LTFH for enhanced operational efficiency and regulatory adherence, paving the way for continued success in the financial services sector.

Next Story
Equipment

SANY India Opens New 3S Branches in Visakhapatnam and Palwancha

SANY India, a leading manufacturer of construction, mining, road, logistics, and energy equipment, has expanded its presence in southern India by inaugurating two new 3S (Sales, Service, Spares) branch offices in Visakhapatnam (Andhra Pradesh) and Palwancha (Telangana). The expansion, in partnership with its authorised dealer Madhura Engineering Services, reinforces SANY’s commitment to providing world-class equipment and faster service access in key industrial and mining hubs.These new facilities complement Madhura Engineering’s existing branches in Guntur and Vijayawada, marking a strate..

Next Story
Real Estate

Compact Homes Lead Demand as Indian Housing Market Stabilises: Magicbricks

Magicbricks, India’s leading real estate platform, has released its PropIndex Report for July–September 2025, revealing signs of stabilisation in the housing market. Despite affordability pressures, housing demand grew 3.1 per cent QoQ, driven largely by compact homes. The share of 1–2 BHK units rose to 54 per cent of total demand, reversing a two-year decline and signalling renewed focus on affordability.While overall supply increased marginally by 1 per cent QoQ (–4.5 per cent YoY), property prices continued to rise. Pune (+41.4 per cent YoY), Mumbai (+29.6 per cent YoY), and Greater..

Next Story
Infrastructure Urban

Flytta Launches India’s First Retrofitted Electric Truck for the Heavy-Duty Segment

Flytta has unveiled India’s first retrofitted 13-ton payload capacity electric truck, specially designed for cement bag transportation across challenging ghat roads and industrial terrains. Developed by Kalyani Powertrain (KPTL)—the electric mobility arm of the Kalyani Group—the truck will operate with Dalmia Cement on the Yadwad–Goa corridor.This industry-first collaboration brings together Flytta’s sustainable logistics expertise, Kalyani’s engineering capabilities in EV retrofitting, and Dalmia Cement’s commitment to green manufacturing. The partnership marks a significant ste..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?