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Our Bureau

Mumbai, Jan. 16 Spurred on by higher net interest income, LIC Housing Finance Ltd reported a 38-per cent increase in Q3 net profit at Rs 106.02 crore, against Rs 76.61 in the corresponding quarter of the previous year.

Mr S.K. Mitter, Director and Chief Executive, LIC Housing Finance, said that in the third quarter the company showed a 36-per cent increase in net interest income at Rs 141 crore and was able to maintain a net interest margin of 2.87 per cent, against 2.56 per cent in the previous year.

The home loan disbursals were up by 49 per cent at Rs 1,652 crore (Rs 1,108 crore). Total income was up 37 per cent at Rs 552 crore, against Rs 404 crore in the previous year.

The average cost of funds went up to 8.63 per cent at the end of December 2007 against 7.9 per cent in December 2006. However, the yield on advances also increased to 10.32 per cent, from 9.17 per cent during the same period.

The company plans to raise around Rs 300 crore-Rs 400 crore of capital through a preferential issue of new equity shares in the next two months. “The shares will be issued to foreign institutional investors as well as the existing promoters at the same rate. The issue will not dilute LIC’s stake, which will remain at 41 per cent,” Mr Mitter said.

Mr Mitter said that under the SARFESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act), the company sent out 16,047 notices. It has so far received payments of Rs 214 crore and made sales worth Rs 29 crore

The Gross Non Performing Assets has declined to 2.77 per cent in the third quarter (3.56 per cent) while Net Non Performing Assets dipped to 1.61 per cent (1.97 per cent)

On real estate prices, Mr Mitter said that prices in the metros were showing no signs of softening. The company’s shares closed at Rs 364.60 on the BSE, against the previous close at Rs 371.95.

More Stories on : Financial Performance | Housing Finance

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