LIC Housing Finance on Thursday reported a 20% year-on-year rise in its net profit for the September quarter to R494.76 crore, benefitting from a strong rise in interest income and an improvement in net interest margin.
The company’s total income, including other income, grew 13% annually to R3,490 crore, while its net interest income, the difference between interest earned and interest paid, rose by 21% over the period to R866 crore.
The lender’s net interest margin, which stood at 2.56% at the end of September last year, expanded 12 basis points to 2.68%.
“The quarter has looked positive for LIC Housing Finance with robust loan growth and consistently strong asset quality and improvement in margins,” the company’s managing director and chief executive officer Sunita Sharma said in a post-results statement. She added that the company is optimistic about its performance in the second half of the current fiscal year.
In the quarter gone by, LIC Housing Finance also witnessed an improvement in overall asset quality. The company’s gross non-performing assets, as a percentage of total loans, fell by 3 basis points to 0.57%, while its net NPA fell 4 bps to 0.28%.
The home finance company’s provisions, including that made towards standard assets, stood at R931 crore as on September 30, as against gross non-performing assets of R750 crore on the same date.
The company’s outstanding mortgage portfolio grew by 15% over the period under review to R1.31 lakh crore.