Latest News | LIC Housing Finance Net Profit Rises 23 Pc in Second Quarter

Mumbai, Nov 1 (PTI) The second largest pure-play mortgage lender LIC Housing Finance on Tuesday announced a 23 per cent on-year growth in net profit at Rs 305 crore for the three months period ending September.

The subsidiary of the country's largest insurer LIC said its net interest income for the quarter declined marginally (80 basis points) to Rs 1,163 crore from Rs 1,173 crore, but the management did not give any reason for the same.

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Individual loan disbursements declined marginally to Rs 14,300 crore from Rs 14,330 crore in the reporting quarter, taking total disbursements to Rs 16,786 crore up 4 per cent from Rs 16,110 crore, led by a 15 per cent increase in project loans at Rs 407 crore from Rs 353 crore. This pushed the total outstanding loan portfolio up 10 per cent at Rs 2,62,336 crore, helping the company earn 8 per cent more in revenue from operations at Rs 5,086 crore from Rs 4,708 crore.

Of the total loan outstanding, individual loans stood at Rs 2,16,771 crore up 15 per cent from Rs 1,88,348 crore.

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The key profitability metric, net interest margin -- the difference between what it earns from lending and what it spends in cost of funds -- stood at 1.80 per cent, down from 2 per cent a year ago.

The company said its provisions rose to Rs 6,522 crore on an expected credit loss basis and provision coverage ratio at 44 per cent for stage 3 accounts as against Rs 5,355 crore in September 2021.

The stage 3 exposure on default declined to 4.90 per cent from 5.14 per cent in September 2021 and 4.96 per cent in June 2022.

Y Viswanatha Gowd, managing director and chief executive of the company, said positive consumer sentiment has resulted in an uptick in demand for residential properties led by the affordable housing segment despite the rising inflationary trends and rising interest rates.

The LIC Housing counter declined over 1 per cent to Rs 400.40 on the BSE, while the benchmark Sensex rose over 65 basis points, continuing the rally for the fourth day.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)