LIC Housing Finance’s Q1 revenue increased by 43% to Rs. 1,324 billion

On Thursday, LIC Housing Finance announced a 43% increase in net profit for the April-June quarter, coming in at Rs 1,324 crore.

In the same time last year, the LIC unit that handles home loans reported a net profit of Rs 925 crore.

According to LIC Housing Finance’s regulatory filing, the total revenue increased to Rs 6,747 crore from Rs 5,291 crore in the first quarter of the current fiscal.

 

The lender’s interest income also climbed, going from Rs 5,250 crore in the same period last year to Rs 6,704 crore this quarter.

 

The mortgage company’s net interest income climbed to Rs 2,209 crore from Rs 1,592 crore in the same period last year.

 

Regarding asset quality, in June 2023, the lender’s gross non-performing assets (NPAs) were 4.98 percent of its gross loans, up from 4.96 percent the previous month.

 

Compared to the same time last year, the net NPA decreased somewhat, falling from 3.01 percent to 2.99 percent.

 

The increase in the bottom line, according to Tribhuwan Adhikari, the recently appointed managing director of LIC Housing Finance, was made possible by the high interest rate and low borrowing costs.

 

Profit Before Tax increased by 45% to Rs. 1,649 crore for the quarter from Rs. 1,140 crore in Q1 FY2023, or Rs.

 

According to him, the net interest margin increased from 2.51% at the conclusion of the first quarter of FY23 to 3.21 percent.

 

The goal, according to him, is to keep the margin at this level over the full fiscal year.

 

He said that the firm is attempting to reduce the NPAs and that this area might need some improvement.

 

“Our goal for the current financial year is to grow the number of branches we have in additional regions to keep up with demand. All sector categories are trending upward. Despite the high interest rates in the country, business indicators are generally optimistic.

system”, he declared.