LIC Housing Finance net profit jumps 19% to Rs 382 cr in Q1

By: |
July 21, 2015 2:10 AM

Mortgage lender LIC Housing Finance today reported 19 per cent jump in net profit at Rs 382.13 crore for the April-June quarter on higher margins and better asset quality.

Mortgage lender LIC Housing Finance today reported 19 per cent jump in net profit at Rs 382.13 crore for the April-June quarter on higher margins and better asset quality.

The company had reported profit after tax (PAT) of Rs 322.31 crore in the same period last year.

“We had better margins because of our strategies to have better asset quality, better asset mix… we have improved our better yielding products,” its Managing Director and CEO Sunita Sharma told reporters here.

The net interest margins in the quarter stood at 2.41 per cent as against 2.19 per cent in the same period last year.

The rise in profit was also on account of reduction in borrowing cost which fell to 16 per cent from 19 per cent as of March 31, 2015.

“We have decided to reduce bank borrowing from 25 per cent to 19 per cent in FY15, and now it is at 16 per cent. We are reducing the high cost borrowing and increasing the low cost borrowing, that is, we are raising funds through non convertible debentures (NCDs),” Sharma said.

The company has a target to raise Rs 40,000 crore through NCDs in FY16. It raised Rs 7,000 crore in the first quarter.

Total gross NPAs on developer loans was 0.60 per cent as against 0.80 per cent. Gross NPAs in individual segment was 0.36 per cent as against 0.40 per cent.

Net NPAs stood at 0.33 per cent as against 0.49 per cent last year.

Total income was up 17 per cent at Rs 2,965 crore as against Rs 2,544 crore.

During the quarter, total loan disbursed was Rs 6,124 crore as against Rs 5,560 crore for the first quarter of FY15.

The outstanding mortgage portfolio was up 18 per cent at Rs 1,10,411 crore as against Rs 93,609 crore.

The individual loan portfolio stood at Rs 1,07,704 crore as against Rs 91,058 crore.

Developer loan portfolio was Rs 2,708 crore as against Rs 2,551 crore.

Do you know What is ? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Third Party vs Comprehensive Coverage in Vehicle Insurance: Which is Better?
2How much do you need to pay for a Rs 15L super top-up health plan? Compare offers
3Health insurance: Tips to ensure your health claim is not rejected