Post this capital infusion by Bain Capital, the capital adequacy for the company would go up by 2 percent from the current 14.5 percent, said , N Sivaraman, President & Whole Time Director, L&T Finance Holding.
L&T Finance posted a 15 percent rise in its first quarter net profit to Rs 192 crore from Rs 167 crore in the same period last year.
N Sivaraman, president & whole-time director, L&T Finance Holding said the company has brought down the proportion of bank borrowings close to around 40 percent at the overall level.
The NBFC company expects more guidelines from the central bank on the same.
N Sivaraman also commented on L&T Finance Holdings current state of business. He says in terms of core competencies, it is either the number 2 or the number 3 player in every segment it is present in, except the commercial vehicles space.
According to N Sivaraman, there's a significant amount of stress in the environment hence one has to be cautious about lending and plan ahead for the provisioning.
The RBI on Monday issued clarifications against 443 queries it had received from external parties in relation to new banking licence guidelines.
RBI on Friday laid the new bank licensing norms. If an NBFC (Non-Banking Financial Banking Company) does convert into a bank, N Sivaraman, President & Wholetime Director, L&T Finance, told CNBC-TV18 that they have to very carefully phase it.
Welcoming the passage of much awaited Banking Amendment Bill, N Sivaraman, president, L&T Financial Holdings told CNBC-TV18, this step is in the direction of further reforms for the financial services sector.
Proxy advisory firm Institutional Investor Advisory Services is advising institutional investors to vote against L&T Finance Holdings' resolution on chairman and managing director YM Deosthalee's remuneration, saying it was way above the industry average.
In an interview to CNBC-TV18, N Sivaraman, president and whole-time director of L&T Finance Holdings says, in the next quarter, he sees benign interest rate environment on the fixed rate. “That should help the NBFCs a bit,” he adds.
Even as India Inc awaits the final guidelines for new bank licences, the L&T Group, which has been a serious contender for the same, today expressed the feasibility of the strict entry norms that has been put forth in the draft paper by the RBI.
Uday Phadke of Mahindra & Mahindra and N Sivaraman of Larsen & Toubro talk about the impact it will have on their respective companies while Abizer Diwanji of KPMG gives his perspective on this development.