1. LIC Housing Finance net up 19% on higher interest income

LIC Housing Finance net up 19% on higher interest income

LIC Housing Finance on Monday reported a 19% year-on-year increase in its net profit for the December quarter to R499.26 crore, benefiting from a strong rise in interest income and an improvement in the net interest margin.

By: | Mumbai | Published: January 17, 2017 6:14 AM
The company's total income, including other income, grew 12% annually to R3,527.93 crore, while its net interest income, the difference between interest earned and interest paid, rose 23% to R915 crore. The company’s total income, including other income, grew 12% annually to R3,527.93 crore, while its net interest income, the difference between interest earned and interest paid, rose 23% to R915 crore.

LIC Housing Finance on Monday reported a 19% year-on-year increase in its net profit for the December quarter to R499.26 crore, benefiting from a strong rise in interest income and an improvement in the net interest margin.

The company’s total income, including other income, grew 12% annually to R3,527.93 crore, while its net interest income, the difference between interest earned and interest paid, rose 23% to R915 crore.

The lender’s net interest margin, which stood at 2.58% at the end of December last year, expanded 18 basis points to 2.75%.

“In a quarter which was one of the most eventful ones in recent times, the company recorded healthy results displaying excellent resilience based on its strong fundamentals and core values. It registered steady and consistent loan growth and margin improvement with improved asset quality,” managing director and chief executive officer Sunita Sharma said in a post-results statement.

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Sharma said based on expectations of improvement in growth in coming quarters, the company is poised to report strong numbers for the last quarter of this fiscal year as well.

In the quarter gone by, LIC Housing Finance witnessed an improvement in the overall asset quality. The company’s gross non-performing assets, as a percentage of total loans, fell by 2 basis points to 0.56%, while its net NPA declined 5 bps to 0.27%.

The home finance company’s provisions, including that made towards standard assets, stood at R969 crore as on December 31, as against gross non-performing assets of R759 crore on the same date.

The outstanding mortgage portfolio grew by 15% Y-o-Y to R1.35 lakh crore.

Of this, loans to individuals accounted for R1.31 lakh crore, up 15% Y-o-Y, while loans to developers stood at R4,488 crore, up from R3,091 crore at the end of the same quarter last year.

During the latest quarter, the company disbursed loans worth R9,684 crore, up from R8,422 crore during the year-ago period.

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