Aided by a healthy growth in net interest income, LIC Housing Finance reported a 28 per cent increase in net profit at Rs 310 crore in the July-September period, against Rs 243 crore in the year ago period.
However, as compared to the April-June quarter, the growth in net profit was flat.
In the reporting quarter, India’s second largest standalone housing finance company logged a 28 per cent growth in net interest income (the difference between interest earned and expended) at Rs 453 crore (Rs 354 crore in the year ago period).
Net interest margin, which is the ratio of net interest income to average earning assets, improved to 2.22 per cent in the September 30quarter from 2.10 per cent in the year ago quarter.
During the quarter, LIC Housing disbursed individual loans and developer loans aggregating Rs 5,682 crore (Rs 5,717 crore) and Rs 265 crore (Rs 121 crore), respectively.
As on September-end, the company’s outstanding mortgage loan portfolio stood at Rs 83,216 crore against Rs 69,119 crore, registering a growth of 20 per cent.
Individual loan portfolio accounts for about 97 per cent of the outstanding mortgage loan portfolio.
Gross non-performing assets increased to 0.73 per cent of the gross advances against 0.60 per cent in the year ago period.
V.K. Sharma, MD and CEO, said “For the full year, we expect the loan book to grow at around 20 per cent, with some improvement in margins.”
On Wednesday, shares of LIC Housing Finance ended at Rs 219.20 per share on the BSE, up 5.59 per cent over the previous close.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.