The board of directors of L&T Finance Holdings (LTFH) on Monday approved the appointment of SN Subrahmanyan, CEO & MD of Larsen & Toubro, as the director and chairperson of the board with immediate effect. The move is in line with L&T’s overall commitment to strengthen its presence in the services area.
Commenting on the decision, AM Naik, Group chairman, said after receiving feedback from shareholders in India and overseas, the decision was taken to make the changes at the board-level to improve the performance of the company substantially. The non-bank will remain focused on retail lending and, as a result, it has been exiting other businesses like asset management, as it was created keeping in mind the Group’s ambition of applying for a banking licence. Naik said: “Shareholders have been sounding us off on performance, therefore, we needed to do something immediately.”
Subrahmanyan will take over from Shailesh Haribhakti, who served as the chairperson of LTFH from June 1, 2017. Haribhakti will continue as a Board member of LTFH. Under the guidance of Haribhakti, LTFH has established itself as a strong and well-capitalised financial institution. The inclusion of Subrahmanyan will provide leadership to LTFH’s board as the company continues to deliver on its stated objective of retailisation.
LTFH is among the market leaders in farm equipment finance, two-wheeler finance, as well as micro loans and continues to be one of the leading players in financing infrastructure sectors like renewables and roads. Furthermore, it has taken strides in building a comprehensive home loans business and launched its first-ever digital native consumer loans business.
Commenting on the development, Subrahmanyan said, “I am happy to be a part of the Board of LTFH and look forward to working with the leadership team as the company embarks on a new journey towards Vision 2026. Given the thrust being provided by L&T Group for the services businesses in its overall portfolio, growth of L&T Financial Services is an important component of the Group’s Lakshya 2026 Strategic Plans.”
Speaking on the occasion, Haribhakti said, “LTFH is transitioning itself into a tech-enabled NBFC with retailisation at its core. I am happy to be a part of this journey and look forward to meaningfully contribute in the coming years. An able leader like Mr. Subrahmanyan will add momentum to this growth story.”
