LIC Housing Q2 net up 28% at Rs 310 crore on income, margin growth
LIC Housing Finance reported 28% rise in net profit at Rs 310.07 cr for Q2 ended Sept 30, driven by an equal quantum of increase in interest income & better margin.
By PTI | Updated:
MUMBAI: LIC Housing Finance ( LICHF) reported 28 per cent rise in net profit at Rs 310.07 crore for the second quarter ended September 30, driven by an equal quantum of increase in interest income and better margin.
The company had posted a net profit of Rs 243.05 crore in the year-ago period.
"Our net profit rose 28 per cent to Rs 310.07 crore, driven by a 28 per cent rise in net interest income, which touched Rs 453 crore from Rs 354 crore a year ago," LIC Housing Finance Managing Director and Chief Executive V K Sharma said here this evening.
"In a very challenging business environment, we have been able to maintain good asset quality and improved profitability. For the full year, we expect loan book growth at around 20 per cent with some improvement in margins."
Net interest margin, the key profitability indicator, for the second quarter stood at 2.22 per cent as against 2.10 per cent a year ago. Total income rose 22 per cent to Rs 2,247 crore, boosted by individual loan portfolio which rose to Rs 80,704 crore, up 21 per cent over last year, Sharma said.
Outstanding loan portfolio rose 23 per cent to Rs 83,216 crore from Rs 69,119 crore, he said, adding that total income rose 24 per cent to Rs 2,302 crore from Rs 1,862 crore.
The mortgage arm of financial behemoth LIC had a better show on the bad assets front with individual loan book recording a marginal dip in gross NPAs to 0.46 per cent from 0.61 and developer loan book showing no new slippages.
Total gross NPAs marginally trended up to 0.73 per cent for the quarter from 0.60 per cent a year ago, while the total net NPA rose to 0.44 from 0.28 per cent a year ago.
During the quarter, the company disbursed a total of Rs 5,947 crore loans as against Rs 5,838 crore a year ago. Disbursements in the developer loan segment more than doubled to Rs 265 crore from Rs 121 crore a year ago.
The company had posted a net profit of Rs 243.05 crore in the year-ago period.
"Our net profit rose 28 per cent to Rs 310.07 crore, driven by a 28 per cent rise in net interest income, which touched Rs 453 crore from Rs 354 crore a year ago," LIC Housing Finance Managing Director and Chief Executive V K Sharma said here this evening.
"In a very challenging business environment, we have been able to maintain good asset quality and improved profitability. For the full year, we expect loan book growth at around 20 per cent with some improvement in margins."
Net interest margin, the key profitability indicator, for the second quarter stood at 2.22 per cent as against 2.10 per cent a year ago. Total income rose 22 per cent to Rs 2,247 crore, boosted by individual loan portfolio which rose to Rs 80,704 crore, up 21 per cent over last year, Sharma said.
Outstanding loan portfolio rose 23 per cent to Rs 83,216 crore from Rs 69,119 crore, he said, adding that total income rose 24 per cent to Rs 2,302 crore from Rs 1,862 crore.
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The mortgage arm of financial behemoth LIC had a better show on the bad assets front with individual loan book recording a marginal dip in gross NPAs to 0.46 per cent from 0.61 and developer loan book showing no new slippages.
Total gross NPAs marginally trended up to 0.73 per cent for the quarter from 0.60 per cent a year ago, while the total net NPA rose to 0.44 from 0.28 per cent a year ago.
During the quarter, the company disbursed a total of Rs 5,947 crore loans as against Rs 5,838 crore a year ago. Disbursements in the developer loan segment more than doubled to Rs 265 crore from Rs 121 crore a year ago.
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