Question

    What is the significance of L&T Finance Holdings Ltd

    merging its subsidiaries, and how does it impact the company's structure?
    A Enhancing its mutual fund portfolio Correct Answer Incorrect Answer
    B Diversifying its lending businesses Correct Answer Incorrect Answer
    C Streamlining operations into a single lending entity Correct Answer Incorrect Answer
    D Expanding its infrastructure credit services Correct Answer Incorrect Answer
    E Establishing a separate entity for its subsidiaries Correct Answer Incorrect Answer

    Solution

    The merger of L&T Finance Holdings Ltd with its three subsidiaries—L&T Finance Limited (LTF), L&T Infra Credit Limited (LTICL), and L&T Mutual Fund Trustee Limited—aims to streamline operations into a single lending entity. The significance lies in creating a simplified 'Single Lending Entity' where all lending businesses are consolidated under one Non-Banking Financial Company (NBFC), which is L&T Finance Holdings Ltd. This strategic move enhances operational efficiency, reduces complexity, and allows for better management of the lending portfolio. The merger, effective from December 4, signifies the company's commitment to a more consolidated and streamlined structure, potentially leading to improved synergy and performance across its lending businesses.

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