• Loan growth targets: L&T Finance is guiding for 20% plus loan growth under its Lakshya 2031 plan, with potential upside if monsoon conditions and geopolitical tensions in West Asia stabilize.
• NIM and fees: A 3 basis point increase in borrowing costs created a 25 basis point impact on net interest margins, but overall margins and fees remained stable due to higher liquidity income, insurance yields, and fee collections.
• Personal loan distribution: Rapid personal loan growth is being driven by digital partnerships with platforms such as CRED, PhonePe, Google Pay, and Amazon, as well as cross-selling to prime two-wheeler customers.
• Credit cost outlook: Credit costs stood at 2.54% and are projected to decline by 10 to 15 basis points per quarter to reach 2% to 2.2% by Q4 FY27, supported by the Cyclops credit engine and a provision coverage ratio of 69%.
• AI-driven efficiencies: Deploying AI bots for pre-delinquency management reduced curing costs from ₹280–₹300 to under ₹10 per account and saved ₹70 crore in recent months, with overall AI initiatives expected to improve operating expenses by 30 to 40 basis points over three to four years.