L&T Finance Limited

Dinanath Dubhashi

Managing Director & CEO and other members of the senior

58%

2022 small indicator, servicing handled through self-help channels. Last time, I had shared that 58% of the total servicing happens through self-help channels, the rest was through branch and call ce

71%

lp channels, the rest was through branch and call centers. Within a quarter, that has increased to 71%, the rest being through branch. And self-help channel, 71% is quite an industry benchmark frankly.

25%

nts Our strong business momentum, and we had said, we had promised that we will maintain at least 25% CAGR in retail book and we will achieve 80% Retailisation by 2026 and you know that the same time

80%

d said, we had promised that we will maintain at least 25% CAGR in retail book and we will achieve 80% Retailisation by 2026 and you know that the same time last year, we were around ~43-44%? What have

44%

ll achieve 80% Retailisation by 2026 and you know that the same time last year, we were around ~43-44%? What have we done this quarter? We have achieved highest ever quarterly retail disbursements, in

Rs. 10,000 crore

ter quarter we have been achieving new highs and for the first time retail disbursements are above Rs. 10,000 crores now which is 15% Q-on-Q growth and 84% Y-o-Y growth. Accepting that Q2 last year though was not i

15%

ing new highs and for the first time retail disbursements are above Rs. 10,000 crores now which is 15% Q-on-Q growth and 84% Y-o-Y growth. Accepting that Q2 last year though was not in the middle of pa

84%

the first time retail disbursements are above Rs. 10,000 crores now which is 15% Q-on-Q growth and 84% Y-o-Y growth. Accepting that Q2 last year though was not in the middle of pandemic, but still we w

Rs. 50,000 crore

st 3-4 quarters. Another significant achievement is our retail book for the first time has crossed Rs. 50,000 crores milestone. It now stands at Rs. 52,000 crores around which is 27% up Y- o-Y and more heartily a 9%

Rs. 52,000 crore

nt is our retail book for the first time has crossed Rs. 50,000 crores milestone. It now stands at Rs. 52,000 crores around which is 27% up Y- o-Y and more heartily a 9% Q-on-Q growth which gives us tremendous confi

27%

t time has crossed Rs. 50,000 crores milestone. It now stands at Rs. 52,000 crores around which is 27% up Y- o-Y and more heartily a 9% Q-on-Q growth which gives us tremendous confidence of achieving th

9%

res milestone. It now stands at Rs. 52,000 crores around which is 27% up Y- o-Y and more heartily a 9% Q-on-Q growth which gives us tremendous confidence of achieving the growth targets of Lakshya whil

“Within this goal, we aim to pivot from a ‘product-focused’ organization to a ‘customer-focused’ approach by creating a Fintech @ Scale and I believe we are doing it quite well, starting with changing the organization structure which we spoke about in our last call and that has actually brought a lot of focus on various segments and has worked very well.”

“Even the best in the industry are around the same level and we hope to improve even further from here as we go towards them.”

“It is in right now conceptualization stage, where we are making some small beginnings in the form of Apps and using the IT knowledge available in the group, we are developing something quite exciting and we will be, over the next year or so, we will be unfolding that slowly.”

“• Disbursements Our strong business momentum, and we had said, we had promised that we will maintain at least 25% CAGR in retail book and we will achieve 80% Retailisation by 2026 and you know that the same time last year, we were around ~43-44%?”

“Through our ALM strategy, we believe that our cost will increase less than proportionately than the e L&T Finance Holdings October 21, 2022 market increases in interest rate and by our product mix change and product strengths, we will be able to definitely maintain our NIMs plus fees at very healthy levels.”

“As you know, our Lakshya goal is below 1% NS3 total and by 2026 most of the books will be retail anyway and this retail NS3 being at 0.88% works extremely well for us.”

“Now, last time I had indicated that by Q2 end, the impact of OTR will be largely over for us.”

“• Mutual Fund Last update before I get into the details will be on Mutual Fund divestment.”

“As I have always said, capital gains received from the deal will be primarily used for strengthening the balance sheet.”

“Going forward as well, rural cash flow prospects are expected to further brighten on back of several positive cues such as first, elevated crop prices and crop realizations in upcoming quarters especially for the Rabi crop.”

Dinanath Dubhashi

18

Moderator

7

Kunal Shah

4

Nischint Chawathe

4

Rikin Shah

3

Abhijit Tibrewal

3

Abhijeet Tibrewal

2

Dinanath Dubhashi

Thank you. A very good morning, ladies and gentlemen and a warm welcome to everybody who is attending this call. A very special quarter for us, we have done extremely well across all business metrics and also well on our way of achieving the milestones which were outlined by us in our Lakshya 26 strategy. In the annual meet that we held in May’22, I had shared with you our strategic plan of Lakshya 26 and its underlying goals. Post that the market scenario has changed considerably, in fact, I can say even drastically, whether in the country or even globally and even it is happening as we speak. We are witnessing new inflation highs in different parts of the world, tightening monetary policies, geopolitical conflicts, increasing interest rates, everything. Amidst all these changing micro variables, I mean there are some very positives also like demand growth in India, for example, especially in rural is very good. Amidst all these changes, I can proudly say that L&T Financial Services h