L&T Finance wraps up $764m sale of mutual fund business to HSBC
Pursuant to the definitive documents, the Mumbai-based nonbanking financial company also realized around INR 764 crores in surplus cash balance in L&T Investment Management, the asset manager to L&T Mutual Fund (LTIML).
L&T Finance Holdings plans to mainly deploy the proceeds from the sale to bolster the balance sheet which will help fuel growth and innovation in its retail lending units.
Dinanath Dubhashi — L&T Finance Holdings Managing Director and CEO said: “The sale of the mutual fund business provides solid impetus to our pace of retailisation, where the retail portfolio mix today stands at 58% of our total loan book.
“We believe, that along with retailisation, a customer-focused approach, and continuing with our chosen ‘Right to Win’ businesses, we will create value for all our stakeholders.”
According to L&T Finance Holdings, its retail businesses had strong disbursement momentum in the second quarter of FY23 with the highest ever quarterly disbursements at INR 10,238 crores in the second quarter of FY23, which is an year-over-year growth of 84%.