LIC Housing Finance profit rises 12%

LIC Housing Finance has reported a 12% increase in net profit at Rs. 573 crore in the second quarter ended September 30, 2018, against Rs. 514 crore in the quarter earlier year. Interest income was up 11% year-on-year (y-o-y) at Rs.4,151 crore (Rs. 3,744 crore in the year-ago quarter). Interest cost rose 13% to Rs.3,138 crore (Rs.2,780 crore). The Net interest income increased up by 5% y-o-y to Rs. 1,012 crore against Rs. 963 crore in the same period in the previous year. Total loan disbursements went up by 30% to Rs. 14,272 crore against Rs. 10,975 crore in the corresponding period in the previous year. Vinay Sah, MD & CEO, LIC Housing Finance, said: “In the second quarter of the financial year, we have seen strong disbursal growth and expect the trend to continue in future quarters. “The company recorded a strong growth in the affordable segment both in value and volume terms, and is poised to continue its growth trajectory.” Net interest margin for the reporting quarter was a shade lower at 2.35 per cent against 2.38 per cent in the year-ago quarter. Gross non-performing assets (GNPAs) rose to 1.20 per cent of gross loans as on September 30, 2018, against 0.80 per cent as on September 30, 2017.