LIC Housing Finance Q2 Profit Rises 11% | Latest News

Mumbai, Oct 28 (PTI) LIC Housing Finance on Monday reported an 11 per cent increase in September quarter net profit to Rs 1,324 crore on a consolidated basis.

The company backed by life insurance behemoth LIC had posted a net profit of Rs 1,192 crore in the year-ago period.

The company's core net interest income declined 6 per cent when compared to the year-ago period despite a 6 per cent rise in assets under management, but weighed down by a sharp reduction in net interest margin (NIM) to 2.71 per cent from the 3.04 per cent in the year-ago period.

The company's Chief Executive and Managing Director Tribhuvan Adhikari admitted that the performance in the core income is a "worry", and added that the lender is trying to increase the proportion of higher yield assets to make up.

The company has been focusing on prime or well-rated customers who extract a cost on NIMs by asking for low rates, he said, adding that it is now pushing for other segments like loans to self-employed borrowers and affordable housing where it can get better pricing.

He added that the company is maintaining its guidance on the AUM growth at 10-12 per cent for FY25 given earlier.

From an asset quality perspective, the company's gross non-performing assets ratio improved to 3.06 per cent from the 3.31 per cent, and Tripathi added that the asset quality does look good.

The company scrip closed 3.53 per cent up at Rs 619.30 apiece on the BSE on Monday, as against gains of 0.76 per cent on the benchmark.