L&T Finance Eyes 25% Retail Growth with AI Engine

L&T Finance is strategically pursuing a sustainable retail growth rate of 20-25% over the next few years. This objective is underpinned by a dual focus on expanding distribution networks and enhancing underwriting discipline through advanced technological solutions. The company's CEO, Sudipta Roy, emphasizes a "risk-first and tech-first" philosophy to ensure calibrated expansion.

The lender is significantly scaling up its gold finance business, aiming to establish around 330 branches by the end of FY26, a move expected to add a high-yield, secured product to its portfolio. This expansion is part of the broader Lakshya 2031 roadmap, with detailed plans to be shared in April. The company reported an 18% year-on-year increase in net profit for the quarter ending December.

Confidence in medium-term asset quality is high, bolstered by the deployment of the AI-based underwriting engine, "Cyclops," which is showing encouraging early results and expected to reduce risk costs. This focus on technology and robust risk management aligns with regulatory emphasis on stronger underwriting standards, positioning L&T Finance for continued growth and financial stability.