LIC Housing Finance records 17 per cent rise in fourth quarter net profit

MUMBAI: LIC Housing Finance has posted a 17 per cent rise net profit of Rs 370 crore in the fourth quarter ending March 2014 on account higher earning from lending. The board of the housing finance company has announced a 225 per cent dividend. Last year the company had announced a dividend of 190 per cent.

In the fourth quarter, the net interest income, the difference between interest expense and interest earned was up 16 per cent to Rs 533 crore. The net profit for the full year stood at Rs 1317 crore, up 29 per cent on a year on year basis.

The outstanding mortgage portfolio stood at Rs 91341 crores as on March 2014, against Rs 77813 crores a year ago, reflecting 17 per cent growth. Of this, individual loan portfolio stood at Rs 88559 crores, up 18 per cent.

LIC Housing Finance, a subsidiary of Life Insurance Corporation, was among 23 applicants to be rejected by the Reserve bank of India for the banking license. Net interest margin for the full year was 2.25 per cent as against 2.18 per cent.

In a media statement MD and CEO, Sunita Sharma indicated that the finance company has delivered ‘strong performance’ even as it was a very challenging year with ‘difficult environment.’ The gross NPA of the finance company stood at 0.67 per cent of the total loan against 0.61 per cent last year.