Friday, March 1, 2013

L&T Infra Lowers its PLR by 0.25% to 15.50%


Mumbai, 28 February 2013: L&T Infrastructure Finance Company Ltd
(L&T Infra) - a wholly-owned subsidiary of L&T Financial Holdings Ltd,
belonging to the engineering conglomerate Larsen & Toubro Ltd (L&T)
- has been contributing to the growth of infrastructure sector for over
six years now, since obtaining NBFC registration from RBI in January
2007. An RBI-registered Infrastructure Finance Company (IFC) and a
Public Financial Institution (PFI) u/s 4A of the Companies Act, it has an
infra/allied sector financial assets book of over Rs.13,250 crores as of 31
December 2012.

As is customary for financial institutions, L&T Infra has its own Prime
Lending Rate - namely, “L&T Infra PLR” - that is reflective of its cost of
funds, operating expenses, margins to cover portfolio risk etc.

Consequent to the latest set of monetary easing steps announced by the
RBI - including a 0.25% reduction in Repo Rate - to spur India’s economic
growth momentum, the cost of borrowings for all banks and financial
institutions, including for L&T Infra, would correspondingly become lower
now.

Accordingly, in order to pass on such benefit to its infra/allied sector
clientele, L&T Infra has decided to lower the “L&T Infra PLR” by 0.25% to
15.50% p.a. effective 1 March 2013. This revised PLR shall be applicable in
respect of both existing loans and new disbursals, in accordance with the
relevant clauses in the Facility Agreements.

In keeping with its pro-active market responsive approach, L&T Infra
would continue to monitor the monetary policy measures by RBI, and
review its PLR periodically.

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