Aim 18% RoE by 2020; demonetisation just a blip: L&T Fin

L&T Finance Holding reported good set of results for quarter ended December 2016. Growth in ‘focused areas’ combined with operating efficiency lead to earnings beating street estimates.Speaking to CNBC-TV18 Dinanath Dubhashi, MD, said the company faced a negative impact of demonetisation in Q3 and added that the effects were seen across sector. Though he agreed that impact of demonetisation is likely to be felt in the upcoming quarter too, but will just be a blip. He is confident that profitability will continue and the company is well on track to achieve its target of 18 percent return on equity (RoE) by 2020.According to Dubhashi, cashless disbursements of loans helped the company offset cash crunch impact to some extent. He said the company is working hard to move towards cashless disbursement in microfinance and expects the situation to come back to normalcy in Q1FY18.Dubhashi said tractor and microfinance sector saw collection issues in the quarter. Average collection in microfinance remained at Rs 1,300.The stock closed at Rs 100.80, up Rs 2.65, or 2.70 percent on the BSE.Watch video for more..