Mumbai : LIC Housing Finance reported a 21 % growth in net profit at Rs 411.73 crore in the quarter ended September 30 on improvement in margins and increased focus on loan against property.
“It is a strategy driven growth.
Besides home loans and project financing, our focus on loan against property has resulted in better profits in the quarter,” Managing Director and CEO Sunita Sharma said.
“We have been able to improve margins and were also able to control our NPAs,” she added.
Net interest margin, a key indicator of lending profitability, in the July-September period was at 2.56 % as against 2.23 %. Total income grew 16 % to Rs 3,089 crore.
Total gross NPAs, including NPAs on developer loans, were 0.60 % as against 0.63 %. Gross NPAs in individual segment were 0.33 % as against 0.38 %.
Net NPAs stood at 0.32 % as against 0.33 % last year. The company disbursed loans of Rs 8,390 crore in the quarter, up from Rs 7,196 crore in the same period last year.
The outstanding mortgage portfolio was up 17 % at Rs 1,14,069 crore from Rs 97,528 crore. The individual loan portfolio stood at Rs 1,11,076 crore, a rise of 17 % from Rs 95,130 crore.
Developer loan portfolio rose 25 % to Rs 2,993 crore as against Rs 2,399 crore. The company raised around Rs 10,000 crore through non- convertible debentures in the second quarter.
It plans to raise Rs 40,000 crore through bonds in this fiscal. In the first quarter, it had raised Rs 7,000 crore through debt.
On lowering interest rates, Sharma said a decision on it will be taken soon. “There is a case for reduction in interest rates. We will soon decide on it.”
