"The company expects loan growth to continue going forward," said Dinanath Dubhashi, Managing Director and Chief Executive Officer, L&T Finance Holdings.

Talking on assets under management (AUM), he said growth was very strong across all business verticals. Rural book has grown at over 60% and housing book has grown at 50% plus, while wholesale growth was 13%.

However, one must remember that the loan growth was on back of a low base, he said.

On the non-performing assets (NPA), Dubhashi said that rural NPAs were down to 6% form over 12% Y-o-Y. Meanwhile, the de-focused book which forms 1.8% of the book declined below Rs 1,000 crore by FY19 and will disappear from balance sheet by FY20. It currently stands at Rs 1,540 crore.

In a rising interest rate scenario, he said the rise in rates will be passed on to the customers.

"Going forward, the company aims to keep their net interest margin (NIMs) plus fess in between 6.7 to 7% range. In FY18, the NIMs plus fees ratio improved to 6.9% from 6.5% in FY17," he added.

Post capital raising of Rs 3,000 crore, the capital adequacy ratio is robust at 18-19% and will be adequate for at least two years, he said.

First Published:May 4, 2018 11:56 AM IST