LIC Housing Finance (LICHFL) reported a six-fold jump in first quarter (Q1-FY23) standalone net profit at ₹925 crore against ₹153 crore in the year ago quarter. The gain comes on the back of increase in net interest income and sharp decline in both loan loss provisions and employee benefit expenses.

Net interest income (interest earned less interest expended) was up 26 per cent year-on-year (y-o-y) at ₹1,610 crore (₹1,275 crore in the year ago period).

Loan loss provisions fell about 63 per cent y-o-y to ₹308 crore (₹830 crore). Employee benefit expenses declined 55 per cent y-o-y to ₹97 crore (₹215 crore).

Total disbursements in the reporting quarter shot up 76 per cent y-o-y to ₹15,201 crore (₹8652 crore). Of this, disbursements in the individual home loan and project segments were at ₹13,131 crore (₹7,650 crore) and ₹309 crore (₹237 crore), respectively.

As at June-end 2022, the outstanding loans portfolio was up 10 per cent y-o-y and stood at ₹2,55,712 crore (₹2,32,548 crore as at June-end 2021).

Net Interest Margin (NIM) for the quarter improved to 2.54 per cent as against 2.20  per cent for Q1-FY22. The gross non-performing assets (GNPAs) position improved to 4.96 per cent as at June-end 2022 against 5.93 per cent as at June-end 2021.

Y Viswanatha Gowd, Managing Director and Chief Executive Officer, noted that with the easing of pandemic and better economic activity, there was an overall improvement in demand in the housing segment. This market trend assisted the company in higher disbursements and improved financial performance during the current quarter, he said, adding the outlook for credit growth was positive.

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