LIC Housing Finance net up 17% on higher interest income

feBureau Posted online: Tuesday, Apr 22, 2014 at 0000 hrs
Mumbai : LIC Housing Finance on Monday posted a net profit of R370 crore for the quarter ended March 31, up 17.03% y-o-y. Profit was boosted by a net interest income of R533 crore, up 16% y-o-y.

Net profit for FY14 stood at R1,317.19 crore compared to Rs 1,023.21 crore last year, a growth of 29%. Net interest margins (NIM) for the entire year were at 2.25%, up 7 basis points from last year.

NIM for Q4 stood at 2.40% against 2.16% in the quarter ended December 31. Sunita Sharma, managing director & CEO, LIC Housing, said the company is looking to increase the NIM to 2.35% in FY15.

“The drivers of growth this time were aggression of the marketing team, focus on loan against property and liability management. Because of liability management, cost of funds have come down and margins improved,” Sharma told FE.

The company recorded total income of R2,478 crore, a growth of 19% y-o-y in Q4. Revenue from operations grew 19% y-o-y to R2,407 crore. The housing finance company’s outstanding mortgage portfolio at the end of Q4 was R91,341 crore, a growth of 17% y-o-y, while the individual loan portfolio stood at R88,559 crore, a growth of 18% y-o-y.

Asset quality deteriorated marginally for the financial year and gross non-performing assets (NPAs) stood at 0.67%, up 6 bps from the corresponding period last year. Net NPAs were up 3 bps and stood at 0.39% at the end of March 31.

Gross NPAs in the individual loan segment improved and stood at 0.27% as on March 31, 2014, against 0.32% as on March 31, 2013.

The board of directors of the company has recommended dividend of 225%, including silver jubilee dividend of 25 %.