Mumbai: LIC Housing Finance Ltd on Monday reported a 12 per cent rise in net profit to Rs 1,329 crore in Q2FY25, from Rs 1,188 crore in the same period last year.
The company posted a 2.5 per cent growth in revenue to Rs 6,926 crore, from Rs 6,758 crore in the year-ago period, on the back of steady growth in housing and project loan disbursements.
The company expressed optimism about growth in the upcoming holiday quarters, driven by a strong focus on affordable housing and rural infrastructure.
The outstanding loan portfolio rose 6 per cent to Rs 294,588 crore, while the individual home loan portfolio rose 7 per cent to Rs 250,879 crore. In the July-September period, loan disbursements stood at Rs 16,476 crore, an increase of 12 per cent over Rs 14,665 crore in the same period last year. During the quarter, the company had an underwriting write-off of Rs 286 crore.
According to LIC Housing Finance, net interest income (NII) declined 6 per cent to Rs 1,974 crore from Rs 2,107 crore in Q2FY24, driven by reduced net interest margin (NIM), which stood at 2.71 percent compared to 3.04. percent a year earlier and 2.76 percent for the first quarter of FY25.
The company’s provisions for expected credit losses stood at Rs 5,458 crore, covering 49 per cent of Stage 3 loans. Stage 3 exposure in case of default (as on September 30) stood at 3 .06 percent compared to 4.33 percent (as of September 30, 2023) and 3.30 percent (as of June 30, 2024), the company said.
“During the six months ended September 30, 2024, the company’s total disbursements stood at Rs 29,391 crore as against Rs 25,521 crore in the same period last year, a growth of 15 per cent. Shares of LIC Housing Finance closed at Rs 618.45 on Monday, up 3.39 per cent.
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