Shares in L&T Finance gained more than 5 percent on Monday after it reported a 71 percent surge in first-quarter net profit.

Dinanath Dubhashi, managing director and CEO of L&T Finance Holdings spoke to CNBC-TV18 about the results and outlook.

“Ind-AS has affected the business in various ways. In all aspects like, AUM, valuation of investments, taking ESOP cost, preferential shares etc. all those are a matter of restatement and we have done that. The most important change is in ECL. The impact is more in terms of the way you recognise the stress and the way you recognise the costs, the expected credit losses,” said Dubhashi.

“So stress is not only what is non-performing assets (NPAs) but you recognise also what you believe is incipient stress and that is what we have done. We always used to say that though our wholesale NPA that is about Rs 2,000 crore, we believe that the entire legacy portfolio under stress is about Rs 5,000 crore,” he said.