LIC Housing Finance posted a net profit of ₹1,324 crore for Q1 FY24, up 43 per cent, led by a 28 per cent rise in revenue from operations to ₹6,747 crore.

Net interest income for the quarter was up 39 per cent at ₹2,209 crore. Net Interest Margin (NIM) stood at 3.21 per cent, compared with 2.51 per cent a year ago.

Outstanding loan portfolio of the lender stood at ₹2.8 lakh crore as of June 30, 8 per cent higher on year. However, loan disbursements for the quarter at ₹10,856 crore, were lower than ₹15,202 crore in the year-ago period.

Home loans

Individual home loan disbursements fell 28.3 per cent y-o-y to ₹9,419 crore, whereas project loan disbursements declined 18.8 per cent to ₹251 crore.

Overall, the individual home loan portfolio was up 10 per cent at ₹2.3 lakh crore at the end of June, whereas the project loan portfolio was 9 per cent lower at ₹11,321 crore. “In the current financial year, our aim is to expand our branch network in newer geographies to match the increase in demand. We are seeing an uptick in all categories of segments,” said MD and CEO T Adhikari adding that business indicators remain positive despite high interest rates.

“We have taken a lot of initiatives to improve the long-term performance of our company, which should hopefully start showing impact from the current year and help us to consolidate our position as the largest housing finance company,” he said, adding that the priority is to build the distribution strength to expand reach.

LIC Housing Finance became the largest HFC in the country after the merger of HDFC with HDFC Bank effective July 2023.

Provisions for ECL (expected credit loss) stood at ₹7,591 crore as on June 30, up from ₹6,141 crore in the previous year. The Stage 3 Exposure at Default was 4.96 per cent, unchanged from a year ago.