L&T Finance Holdings finalizes merger of three subsidiaries into its entity

L&T Finance Holdings successfully concluded the merger of three of its subsidiaries - L&T Finance Limited, L&T Infra Credit Limited, and L&T Mutual Fund Trustee Limited, today, solidifying a unified lending entity. This strategic move, effective from December 4, consolidates all lending businesses under a single operational Non-Banking Financial Company (NBFC), marking a significant milestone for the organization.

In a statement released on Monday, the company highlighted that the merger establishes a streamlined 'Single Lending Entity,' positioning the entirety of its lending operations within L&T Finance Holdings Ltd. This decision aligns with the company's vision for enhanced operational efficiency and growth opportunities.

The consolidation plan, initially sanctioned in January this year, garnered approval from the Reserve Bank of India (RBI) in March, setting the stage for the seamless integration of the subsidiaries into the parent company.

Dinanath Dubhashi, the Managing Director and CEO of L&T Finance Holdings Ltd, expressed optimism about the merger, citing its potential to unlock new growth prospects, foster innovation, and ensure long-term success. He emphasized the move's positive impact on governance, promising sustainable value creation for all stakeholders.

Dubhashi further remarked on the timely completion of the merger, underscoring its significance within the broader strategic framework of the company. He highlighted the reduction of the number of NBFCs from eight to one over the past seven years, demonstrating a concerted effort towards achieving a streamlined and efficient corporate structure, reported Business Today.

Simultaneously, the company announced the appointment of Amresh Kumar as its Chief Risk Officer for a tenure of two years, effective from the merger's completion date. Kumar's appointment is expected to reinforce the organization's risk management framework, ensuring robust governance and compliance measures.

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