LIC Housing shares jump 10% on strong June quarter earnings
LIC Housing Finance on Thursday reported standalone net profit of Rs 1,324 crore in the April-June quarter, up from Rs 925 crore posted in the year-ago period. The housing finance subsidiary’s standalone total income for the quarter under review stood at Rs 6,747 crore against Rs 5,291 crore — up 27% YoY. The interest income also increased to Rs 6,704 crore from Rs 5,250 crore in the same quarter a year ago.
Net interest income of the mortgage firm increased to Rs 2,209 crore as compared to Rs 1,592 crore in the year-ago period. The lender's gross non-performing assets (GNPAs) stood at 4.98% of the gross advances in June over 4.96% a year ago. The net NPA declined marginally 2.99% against 3.01% in the year-ago period.Tribhuwan Adhikari, the newly appointed managing director of LIC Housing Finance, said the jump in the bottomline was aided by high interest rates and low borrowing costs.
Profit before tax for the quarter was Rs 1,649 crore as against Rs 1,140 crore in Q1 FY2023, reporting 45% growth. He said the net interest margin has improved to 3.21% as against 2.51% at the end of the first quarter of FY23. He said the aim is to maintain a margin of this level for the entire financial year.
On the NPAs, he said, the company is working on bringing it down and there would be good improvement on this front. «In the current financial year, our aim is to expand our branch network in newer geographies to match the increase in demand. We are seeing an uptick in all categories of segments.
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