• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mr S.K. Mitter

Our Bureau

Mumbai, Oct. 22 Driven by higher interest income, LIC Housing Finance Ltd has reported a net profit of Rs 116.37 crore in the second quarter, a 53 per cent rise from the previous year’s Rs 75.93 crore.

Net interest income was up 43 per cent at Rs 150 crore. Loan disbursals grew 36 per cent at Rs 1,599 crore while loan sanctions were higher by 69 per cent at Rs 2,268 crore.

“The net interest margin as on September 30, 2007 stands higher at 3.21 per cent against 2.68 per cent in the year ago period. This is the highest it has been in the last 15 quarters,” Mr S.K. Mitter, Chief Executive and Director, LIC Housing Finance, said.

The outstanding mortgage portfolio as on September 30, 2007 stood higher at Rs 19,135 crore, a 20 per cent growth over the previous year’s Rs 15,959 crore.

Mr Mitter said the company projected a growth of 25-28 per cent in business and hoped to end the year with total loan disbursements of Rs 6,250 crore and sanctions of Rs 6,800 crore. The gross non-performing assets fell to 2.84 per cent from 3.75 per cent.

In the six months ended September, 2007, the company reported a net profit of Rs 163.07 crore, up 44 per cent higher than the previous year’s Rs 113.39 crore

It plans to raise over Rs 500 crore by issuing equity shares through the Qualified Institutional Placement route by December-end or early January.

Mr Mitter said the company was in discussions with its parent, the Life Insurance Corporation, about the possible dilution of its stake of 40.67 per cent, post the issue. “We are talking to merchant bankers and we should come out with the issue by the end of December or the beginning of January,” he said.

LIC Housing Finance’s scrip is currently ruling at Rs 226.15 on the BSE and the company hopes to issue shares at Rs 300.

The company is yet to launch a reverse mortgage product due to taxation issues. According to LIC Housing Finance officials, companies will be taxed during the 10-15 year term of the product although the cash flows kick in only after the term.

More Stories on : Financial Performance | Housing Finance | Private Placement

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Debit cards run mobiles close!

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line