According to the bank website, the proposed investment will "support the agriculture segment in India by helping L&TF augment its farm equipment financing portfolio. L&TF will match IFC’s investment 3x by contributing up to US$375M for the same end-use, and at least 60% of the combined fund will be utilized for on-lending to the low-income states of India.L&TF is the rural financing focused arm of L&T Finance Holdings which is the financial services holdco of the L&T Group. L&TF loan book comprises of: (i) rural (54%) (ii) real estate financing (18%), (iii) wholesale financing (26%) and (iv) others (2%). The rural book, which is the focus segment of this entity can be further segmented into farm equipment financing, 2-wheeler financing and micro loans. As of December 31, 2018, L&TF’s AUM stood at INR435B (US$6.04B) and equity at INR90B (US$1.25B). IFC may also mobilize additional funding from other investors for the project."

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

According to IFC, "L&TF is a wholly owned subsidiary of L&T Finance Holdings Limited (L&TFH), the financial services arm of Larsen and Toubro Limited (L&T). L&TFH, through its operating companies, is engaged in rural, housing and wholesale/infrastructure finance as well as investment and wealth management. L&TFH services about 12M customers with pan-India presence. It reports an asset base of over US$14B. L&TFH’s largest shareholder is Larsen and Toubro Limited which is a major global technology, engineering, construction, manufacturing and financial services conglomerate." 

L&T Financial Services
Mr. Kumar Ayashkanta
Head-Treasury Strategy & Ratings Group
+91 22 6212 5795
kumarayashkanta@ltfs.com
CST Road Kalina, Santacruz (East), Mumbai - 400098, India
https://www.ltfs.com/

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/