LIC Housing Finance on Thursday reported a 43% year-on-year rise in its net profit to Rs 1,324 crore for the first quarter of the current fiscal owing to a growth in its net interest income.
Net interest income, the difference between interest earned and interest expended, rose 39% Y-o-Y to Rs 2,209 crore due to an expansion in the loan portfolio. The non-bank lender’s net interest margin rose to 3.21% for the June quarter, from 2.51% a year ago.
Following the merger of Housing Development Finance Corporation with HDFC Bank, LIC Housing Finance has become the largest home loan company in India. The company’s outstanding loan portfolio rose 8% to Rs 2.8 trillion as on June 30.
The individual home loan portfolio rose 10% to Rs 2.3 trillion for the quarter under review. The project loan portfolio fell to Rs 11,321 crore as on June 30, from Rs 12,443 crore a year ago. Total disbursements were Rs 10,856 crore, lower than Rs 15,202 crore a year ago.
Disbursements in the individual home loan segment were Rs 9,419 crore in the June quarter, lower than Rs 13,133 crore a year ago. Project loans were at Rs 251 crore, compared with Rs 309 crore a year ago. Provisions for expected credit losses rose to Rs 7,591 crore from Rs 6,141 crore a year ago.