In response to robust demand for house loans, LIC house Finance Limited on August 3 reported a 43 percent increase in standalone net profit at Rs 1,324 crore for the quarter ended June 30, 2023. In the same period last year, the company reported a net profit of Rs. 925 crore.
Net interest income for the company increased by 38% to Rs 2,252 crore in the quarter under review from Rs 1,628 crore in the previous fiscal.
Stage 3 exposure at default (gross non-performing asset) was 4.98 percent as of June 30, 2023, compared to 4.96 percent in June 2022. Net NPA, however, dropped from 3.01 percent to 2.99 percent year over year.
In the aforementioned quarter, LIC Housing Finance’s overall expenses increased by 23%, with finance costs increasing by 23% to Rs 4,494 crore and interest income increasing by 28% to Rs 6,704 crore.
Despite increasing mortgage rates and home costs, the post-pandemic period has seen an increase in housing demand in India as a burgeoning middle class looks to invest in real estate.
Since May 2022, with two breaks, the Reserve Bank of India (RBI) has increased benchmark interest rates by 250 basis points. In June, retail inflation jumped to 4.81 percent, ending a four-month falling trend.
Ahead of the earnings, LIC HFL shares on the BSE finished 4.86 percent lower at Rs 393.90 a share.
LIC Housing Finance Ltd (LICHFL), one of India’s top housing finance firms, was established in 1989 with the main objective of offering long-term financing to individuals for the purchase or construction of homes or apartments for residential use in India. LICHFL offers financing on existing real estate for commercial and private needs in addition to lending to professionals for the purchase or construction of clinics, nursing homes, diagnostic centres, office space, and equipment.
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