The key benefits of the merger includes enhanced governance and controls, astute liability management, ability to provide enhanced return to shareholders, seamless compliance and adherence to RBI scale based regulations and operational efficiency.

Earlier in January 2023, the respective boards of the said companies had approved the proposed merger and the process was completed post requisite approvals from shareholders, creditors, and regulatory/ statutory authorities - Reserve Bank of India (RBI), National Company Law Tribunal (NCLT), Securities and Exchange Board of India (SEBI), and Stock Exchanges.

Commenting on the merger Dinanath Dubhashi, managing director & CEO, LTFH said ?It gives me immense pleasure to announce that the merger has been completed before the envisaged time with all the necessary approvals in place. This merger is amongst the key strategic initiatives undertaken by us in line with the ?Right Structure? strategy that our company has been implementing over the last seven years; with the number of NBFCs reducing from 8 to 1.

The decision to merge two lending entities with the same NBFC ? Investment & Credit Company registrations and one non-operating entity with LTFH was taken after carefully considering market dynamics, internal synergies, and a vision for sustained growth. With the merger, we believe we will be able to unlock newer avenues for growth, innovation, and long-term success. All these benefits would lead to superior governance that would create sustainable value for all stakeholders.

Meanwhile, the company?s board has approved the appointment of Amresh Kumar as the Chief Risk Officer of the company for a period of two years in place of Vinay Chhawchharia, effective from 4 December 2023.

L&T Finance Holdings is a non-banking financial company (NBFC). The company offers rural group loans & micro finance, farm equipment loans, two-wheeler loans, personal loans, home loans & loan against property as well as SME Loans.

L&T Finance Holdings reported 46% jump in consolidated net profit to Rs 595 crore, up 46% from Rs 406 crore recroded in the same period last year. Total income rose by 14% to Rs 2,175 crore in the second quarter as compared with the same period last year.

The scrip hit 52-week high at Rs 155.60 in intraday today.

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