Mortgage lender LIC Housing Finance today reported a 15 per cent jump in net profit at Rs 470 crore in the quarter ended June 30 on account of higher loan growth in the individual loan segment.
Mortgage lender LIC Housing Finance today reported a 15 per cent jump in net profit at Rs 470 crore in the quarter ended June 30 on account of higher loan growth in the individual loan segment. The company had posted a profit after tax of Rs 408 crore in the same period last year. “We disbursed Rs 8,286 crore in the individual loan segment, representing a growth of 17 per cent over the corresponding period in the previous year. “With growing focus of the government in the affordable housing segment, we are confident that the growth trajectory would be maintained,” managing director and CEO Vinay Sah said.
In the project loan segment, disbursement stood at Rs 413 crore against Rs 478 crore in the year-ago period. There was a slight dip in net interest margins at 2.50 per cent in the quarter from 2.61 per cent in the same period last year. Its cost of borrowing declined to 8.5 per cent as of June 30, 2017 compared to 9.08 per cent last year same period. Gross NPAs was at 0.72 per cent as against 0.59 per cent, while net NPA stood at 0.38 per cent as against 0.28 per cent.
“The stress was seen in the retail segment. We saw stress in some parts of Rajasthan, Karnataka and north-east,” Sah said. The outstanding mortgage portfolio was Rs 1,47,051 crore as against Rs 1,27,437 crore last year.
The individual loan portfolio grew 14 per cent at Rs 1,41,440 crore from Rs 1,23,681 crore a year ago. Developer loan portfolio rose 49 per cent to Rs 5,611 crore as against Rs 3,756 crore. The company plans to raise Rs 50,000-55,000 crore through debt in the current financial year. The company’s scrip closed 2.34 per cent down at Rs 720.90 on the BSE, whose benchmark index ended at 32,309.88, down 0.23 per cent.