INSUBCONTINENT EXCLUSIVE:
ET Intelligence Group: The stock of LT Finance Holdings gained 10% on Monday after the non-banking financial company declared its
provisioning journey to be complete by allocating additional funds towards stressed assets
It also reported robust numbers for the June 2018 quarter reaffirming commitment towards improving profitability and asset quality of the
In the June quarter, we adjusted another Rs 1,800 crore thereby taking total provisioning to Rs 3,000 crore against stressed assets of Rs
lenders to provide for expected future losses under a methodology called expected credit losses (ECL)
This differs from the previous accounting standards (Indian GAAP) which focused on incurred losses
ECL is based on statistical models which incorporate internal and external factors affecting the loan portfolio.
LT Finance provided for the
entire ECL in its infrastructure portfolio at the end of the June quarter.
The company reported robust 71 per cent growth in net profit at
Rs 538 crore for the June 2018 quarter aided by double digit growth in interest and fee income and lower credit cost.
It continued to reduce
focus on wholesale segment during the quarter in favour of rural and housing finance
The proportion of wholesale loans reduced to 45 per cent from 55 per cent a year ago while that of rural and housing together increased to
