LIC Housing Finance Q1 net rises 21%

MUMBAI: LIC Housing Finance reported a 21% year-on-year growth in net profit for the quarter ended June, driven by rise in net interest income (NII) and non-interest income despite a steep increase in bad loan provisioning.

Net profit for the first quarter rose to 256 crore from 212 crore a year ago. Net interest income, mainly earned by lending to individuals and builders, increased 23% in the first quarter to 361 crore. The company's non-interest income, which includes treasury and fee income, rose 40% to 464 crore. The company increased provisions for bad loans to 33.40 crore from 9 crore a year ago. Gross non-performing assets (NPAs)stood at 0.84% against 0.92% a year ago, while net NPAs were steady at 0.35%.

Net interest margins (NIM), the difference between the cost of funds and yield on advances, stood at 2.78% against 3.01% a year ago. Total disbursements, including loans to individuals and developers, stood at 3,545 crore against 3,392 crore in the previous year. Loans to individuals rose 15% to 3,468 crore.

"There has been some sluggishness in real estate transactions in certain parts of the country on account of customers going into wait-and-watch mode. However, offtake in our business in June was quite healthy," said CEO VK Sharma.