L&T Finance announced a strategic plan to grow its loan book to nearly Rs 3 lakh crore by 2031 [1].
The initiative, titled Lakshya 2031, signals an aggressive expansion phase for the Indian non-bank financial company. By scaling its retail and corporate franchise, the firm aims to capture a larger share of the credit market while maintaining strict risk controls.
Sudipta Roy, Managing Director and CEO of L&T Finance Ltd., said the roadmap for this growth is outlined [2]. The company currently holds a loan book of Rs 1.21 lakh crore for the 2026 fiscal year [1]. To reach the 2031 target, the firm is pursuing an annual growth rate of above 20% [3].
Central to this strategy is the integration of AI-driven underwriting to streamline loan approvals and mitigate risk. The company intends to keep its credit costs under 2% [3], a metric essential for maintaining profitability during rapid scaling.
The expansion will target both retail and corporate segments. By diversifying its portfolio, L&T Finance seeks to reduce reliance on any single sector while leveraging its digital capabilities to reach more borrowers across India.
Management said the focus remains on balancing aggressive growth with asset quality. The Lakshya 2031 plan represents a significant leap from current operations, requiring a disciplined approach to credit costs, and capital management to ensure long-term sustainability.
“L&T Finance announced a strategic plan to grow its loan book to nearly Rs 3 lakh crore by 2031”
L&T Finance is attempting to transition from a traditional lender to a high-growth, tech-enabled financial powerhouse. By targeting a loan book that is more than double its current size while capping credit costs at 2%, the company is betting that AI-driven underwriting can decouple rapid growth from increased default risk. This strategy reflects a broader trend among Indian NBFCs to digitize their credit assessment to compete with agile fintech startups.
