L&T Finance reported healthy growth in its Q4 FY25 business update, with the retail loan book expanding 18.8% year-on-year to ₹95,100 crore, compared to ₹80,036 crore in the previous year.

The company’s retailisation ratio improved to 97% in Q4 FY25 from 94% in Q4 FY24, highlighting its shift towards a more consumer-focused lending portfolio.

Retail disbursements for the quarter stood at ₹14,870 crore, marginally up from ₹15,044 crore in Q4 FY24. Urban finance saw a rise to ₹6,100 crore from ₹5,984 crore, while SME finance increased to ₹1,520 crore from ₹1,213 crore. However, rural business finance saw a slight dip to ₹5,110 crore from ₹5,768 crore a year ago.

For the full financial year, retail disbursements grew 11% to ₹60,020 crore, reflecting steady expansion across segments.

Also read: Bajaj Finance posts 26% AUM growth in Q4, new loans up by 36%

The company’s pan-India 0 DPD (Days Past Due) collection efficiency for rural group loans and microfinance was estimated at 99.38% in March 2025, further improving to 99.64% when excluding Karnataka.

Pan-India 0 Days Past Due (DPD) refers to the percentage of loans where borrowers have made their payments on time, with no overdue amounts as of the reporting date.

Ahead of the business update, L&T Finance shares closed 1.48% higher at ₹154.00 on the BSE. The company’s performance underscores its strategic push towards retail lending, supported by stable asset quality and sustained loan growth.