L&T Finance’s supply chain vertical provides working capital finance and short-term loans to entities that are suppliers to large industrial manufacturers and original equipment manufacturers.
Centrum Financial Services, the NBFC arm of the Centrum Group, gets a seasoned loan book, and half the loans are to suppliers and dealers on L&T itself. The average size of these loans is around a crore, and the average duration is 90 to 180 days.
On the other hand, the sale of the supply chain business is part of L&T Finance’s strategy as well, as they focus on their dual objective: concentrating on the core strengths and retailisation of the overall lending book. Virender Pankaj, the chief executive, whole sale and group lead of L&T, argues that within the Wholesale Finance book, they continue to focus on the renewables, roads and transmission sectors.
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