LIC Housing Finance Limited Q1 net profit up 18.6 per cent at Rs 382 crore

MUMBAI: LIC Housing Finance said that its June quarter net profits rose 19% year-on-year, aided by robust net interest income, which grew 30% during the three-month period.

Net profit was at Rs 659 crore compared with Rs 506 crore during the corresponding quarter last year. Net interest income is the difference between interest earned and paid out.

“Despite a challenging environment the company recorded a healthy growth in loan portfolio coupled with a strong margin improvement,” said Sunita Sharma, managing director and chief executive officer of LIC Housing Finance. “We look forward to maintaining a healthy growth with profitability in the coming quarters too.”

“We have extended our footprints by adding 14 offices across the country,” she said.

The company’s individual loans expanded 18% to Rs 1.08 lakh crore surpassing the average industry credit growth in the range of 9-10%. Loans given to builders rose marginally by 6% to Rs 2,708 crore.

The company has improved its credit quality as the net bad loan ratio fell to 0.33% compared with 0.49% a year ago.