INTERNAL
L&T FINANCE
Investor Digital Day
Tech Vision & Execution Roadmap
25TH November'24
MrINTERNAL. Sudipta Roy
Managing Director & CEO
With L&T Finance since | : | July, 2023 |
Total years of | : | 28 years |
experience | ||
Past Experience | : ICICI Bank, Deutsche Bank, | |
Citibank N.A. | ||
Educational | : MBA - XLRI Jamshedpur | |
Qualification | B.Tech. (Hons.) - IIT Kharagpur |
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INTERNAL
Some facts not widely known about L&T Finance…
2.5Cr+
customer franchise
Highest rural franchise of 1.6Cr amongst NBFC peers
Pan-India presence
covering
~2 Lacs Villages
100+ Cities / Towns
One of the largest
financiers in the JLG
segment having served
~1.1Cr women entrepreneurs
~50-50%
Distribution of portfolio mix
between Urban & Rural
India
Urban franchise with a
booksize of ~₹ 42,000 Cr built on 100% digital onboarding
Leading tractor financier in
the country
Strong distribution franchise
13,200+
distribution touchpoints &
34,000+ employees
Best in class
ESG Ratings
A-
Rating
100%
Paperless Onboarding across
business lines including
HL & SME
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Note: Figures as of Q2FY25
INTERNAL
L&T FINANCE
L&T Finance
Fast Forward Transformation story…
(Q4FY22 vs Q2FY25)
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Transition from a Wholesale dominant franchise to a Retail diversified NBFC
Retailisation at 96% (Up by 45%)
Retail Book grew by 97%
Realignment of strategy from 'Product focused' to 'Customer focused'
Posted highest ever PAT of ₹ 696Cr | RoA | RoE |
2.60% | 11.65% | |
Up by 104% | ||
Despite the Consol book remaining flat | Up by 127bps | Up by 475bps |
Credit Cost | Asset Quality | |
2.59% | GS3 3.19% | NS3 0.96% |
Improved by 41bps | Improved by 89bps | Improved by 102bps |
+ 5 Million | 26% growth in Customer franchise |
customers On the back of robust distribution network with 28,000+ partner touchpoints
Digital Transformation at the core of this transition
Launched customer facing channel PLANET. Currently serving ~13 million customers Transitioned from a disjointed incremental to integrated modular product technology approach
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INTERNAL
Accelerated business momentum
L&T FINANCE
Picking up speed in execution in the last 18 months…
- 1.38x growth in Retail book* led by razor sharp focus on customer acquisition and focus on prime & prime plus segment
15,092
11,19335%
Q1FY24Q2FY25
Disbursements (₹ Cr)
Book | |
Business | Growth |
Rural Business Finance | 1.34x |
Farmer Finance | 1.10x |
TW Finance | 1.38x |
Personal Loans | 1.20x |
Home Loans + LAP | 1.54x |
SME | 2.92x |
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Note: Retail Book & disbursements includes acquired portfolio
INTERNAL
L&T FINANCE
Bolstered people, risk & service framework
Picking up speed in execution in the last 18 months…
- Transitioned from Silo to Matrix organization structure
- Recognized as a 'Great Place to Work'
- Established a strong risk & service culture
- Launched Project Cyclops, an AI-driven, multi- dimensional underwriting engine
- Built a 3-Tier Compliance structure for a Compliance first approach
- Introduced multiple employee friendly policies for better employee engagement
- Institutionalized NPS tracking for all lines of business with w.e.f. Nov'23
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INTERNAL
L&T FINANCE
Picking up speed in execution in the last 18 months…
Future ready Digital@core
✓ Omni channel digital architecture | ✓ API stack for E2E digital journeys at | |
✓ | Reimagined customer journeys to | partnerships |
provide a superlative journey | ||
✓ | Use of AI-ML technologies derived | |
models |
- Built inhouse application engineering capabilities
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INTERNAL
L&T FINANCE
Picking up speed in execution in the last 18 months…
Ramped up Brand visibility & Thought Leadership
- Multi-channelbrand building efforts
- Launched Integrated Marketing
Campaigns - Launched the 1st edition of L&T Finance (LTF)'s marquee AI event 'RAISE'
- Onboarded Indian cricketer
Jasprit Bumrah as the Brand Ambassador
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Digital transformation around a productized tech approach
Branch | LEARNING LAYER | ||||||||||
L&T FINANCE | Acquisition Layer | Portfolio Layer | |||||||||
API & Microservice basedarchitecture | FLS/DSA | CUSTOMER Consent Verification& | Unified Customer Experience | ||||||||
Call Centre | Customer Intelligence | Credit Intelligence | Product Technology Stack | Portfolio Intelligence | Service Intelligence | ||||||
App | |||||||||||
Social Media | |||||||||||
Website | |||||||||||
Open | |||||||||||
CUSTOMER DATA REPOSITORY | External | ||||||||||
External | Data | ||||||||||
DATA INTELLIGENCE | |||||||||||
Sources | |||||||||||
Marketplaces | |||||||||||
Information Security
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INTERNAL
Tech blocks making LTF future ready..
L&T
Customer
Consent Layer
Ability to Identify Customer
Liveness matching
With OCR as KYC
Account Aggregator
deep integration
Digilocker, fuzzy logic & penny credit to reduce TAT & prevent frauds
Identification through video KYC
for faster TAT & better customer verification
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Completed | Project piloted, implementation in other products planned for FY25 | Planned post FY25 |