LIC HOUSING Finance has reported a net profit of Rs 234.2 crore for the quarter ended September 2010 — an increase of 37% over Rs 171 crore in the corresponding quarter last year. Profits were driven by healthy growth in loan book, coupled with a leash on expenditure.
According to a statement issued by the company, loans disbursed during the quarter rose 36% to Rs 5,101 crore while sanctions jumped 43% to Rs 7,667 crore. Following the increase in interest income , net interest margins for the second quarter improved to 2.93% compared with 2.44% in the same period of the previous year.
Sequentially, there has been a slowdown in sanction growth. The first quarter of the current fiscal had seen home loans sanctions grow 51%. The company said it is yet to receive the proceeds of sale of shares of LIC Mutual Fund sold to Nomura Asset Management Strategic Investment.
LICHF is due to realise Rs 138.4 crore from the sale. The transaction is pending procedural requirements a statement said. Sources said the money was likely to come in during the second half of the current fiscal.
According to a report by Kotak Securities , strong retail demand for housing is the key growth driver for LIC Housing finance .
The company’s asset quality has also improved sequentially. The outstanding mortgage portfolio as on September 30, 2010, was Rs 43,385 crore against Rs 31,890 crore on September 30, 2009, thus registering a growth of 36%. Gross NPA of the company stood at 0.74% (Rs 319.59 crore) on September 30, 2010, against 1.28% (Rs 408.55 crore) in the September 2009 quarter. Net NPAs were 0.21% (Rs 90.16 crore) against 0.62% (Rs 198.25 crore) for the corresponding dates.
In a statement issued here on Thursday , LIC Housing Finance managing director RR Nair said: “The year continues to be good on all the operational matrices , and we are confident of maintaining the good performance.”
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