LIC Housing Finance Ltd net profit increased by 12 percent to Rs 1,329 crore in Q2 FY25 from Rs 1,188 crore in the same period previous year. The company's income increased by 2.5 percent to Rs 6,926 crore from Rs 6,758 crore in the same period last year given its steady increases in housing and project loan disbursements.
With a strong emphasis on affordable housing and rural infrastructure, the corporation indicated optimism for growth in the following festive quarters.
The portfolio of outstanding loans increased 6% to Rs 294,588 crore, while the portfolio of individual home loans rose 7% to Rs 250,879 crore.
The July–September quarter loan disbursements were Rs 16,476 crore, a 12% increase over the Rs 14,665 crore disbursed during the same period last year. The company experienced a technical write-off of Rs 286 crore during the quarter.
Net interest income (NII) decreased by 6%, from Rs 2,107 crore in Q2 FY24 to Rs 1,974 crore, according to LIC Housing Finance. This drop was caused by a reduced net interest margin (NIM), 2.71 percent as opposed to 3.04 percent a year earlier and 2.76 percent for Q1 FY25.
Tribhuvan Adhikari, the company's managing director and chief executive, acknowledged that the core income performance is a "worry" and stated that the institution is attempting to raise the percentage of higher yield assets to make up.
According to him, the company has been concentrating on prime or highly regarded clients who demand low rates from NIMs. He also stated that the company is currently pursuing additional markets, such as loans to independent contractors and inexpensive homes, where it can obtain better rates.
He went on to say that the business is sticking to its original projection of 10–12% AUM growth for FY25.
The company's total disbursements for the six months ending September 30, 2024, were Rs 29,391 crore, up 15% from Rs 25,521 crore for the same time the year before.
