L&T Fin Holdings creating Rs 10 bn corpus for unanticipated risks

LTFH's provision coverage ratio has also increased to 62.47 per cent at end-September

L&T Finance Holdings (LTFH) plans to build a corpus of Rs 10 billion in two to three years, as a provision against future risks.

LTFH managing director Dinanath Dubhashi said the intent was to make a provision of Rs 0.5-1 billion in each quarter. The company had put aside Rs 1.1 billion for this in the September quarter, taking the overall macro-prudential provision to Rs 2 billion, for two segments -- Rs 1.5 billion rural and Rs 0.5 billion for housing.

The intent is to have provisions to the extent of 1.25 per cent of the total loan book. The corpus would be over