LIC Housing Finance Q2 net profit up by 27%
LIC Housing Finance Ltd has announced its unaudited results for the second quarter ended September 30, 2009, following its approval by the Board of Directors in a meeting held in Mumbai on October 29, 2009.
The Company has recorded a strong growth in its business during the second quarter ended September 2009. The Company sanctioned Rs5365 crore and disbursed Rs. 3757 crore of loans, registering a growth of 82% and 75% respectively. In the individual loan segment the Company sanctioned Rs4427 crore & disbursed Rs3388 crore, registering a growth of 107% & 81% respectively.
The Net profit for the second quarter was Rs171.25 crore as compared to Rs.135.07 crores in the corresponding period last year, thus showing a growth of 27 %. The Total Income of the Company for the second quarter was Rs839 crore as against Rs708 crore during the same period last year, a growth of 19%.
For the six months ended September 2009, the Company sanctioned Rs8898 crore and disbursed Rs6187 crore, an increase of 88% and 69% respectively. In the individual loan segment the Company sanctioned Rs7281 crore & disbursed Rs5667 crore, registering a growth of 101% & 72% respectively.
For the six months ended September 2009, the Company’s total Income was Rs.1621 crore as against Rs.1331 crore during the same period last year, a growth of 22%. Net profit during this period was Rs. 295.08 crore as compared to Rs. 239.73 crore in the corresponding period last year, a growth of 23%. The Outstanding Mortgage Portfolio as on September 30, 2009 was Rs. 31890 crore as against Rs. 24132 crore on September 2008, thus registering a growth of 32%.
The Gross Non Performing Assets recorded a decline from 1.85% as on September 2008 to 1.28% as of September 2009. The Net NPAs of the Company declined from 0.87 % as of September 2008 to 0.62% as of September 2009. The Company recorded a Net Interest Margin of 2.44 % for the second quarter of FY – 2009-10 as against 2.45% in the first quarter of FY – 2009-10.
RR Nair, Director and Chief Executive, LIC Housing Finance Ltd said: “The Company achieved a robust business growth in the second quarter, continuing on the strong Q1 performance. We are confident of delivering full year business growth numbers much in excess of industry averages. NPAs have also shown signs of easing in the second quarter and here too the Company is well in sight of its year–end targets of achieving gross NPA level of below 1%. Income growth has been lower than loan portfolio growth primarily because of lower margins on account of the Company passing on the lower cost benefits to the existing customers to an extent of 200 basis points in the past nine months. As far as margins are concerned, they are likely to improve in due course.”
About the Company: LIC Housing Finance Ltd is one of the largest housing finance companies in India having one of the widest networks of 158 marketing offices across the country and representative offices at Dubai & Kuwait. It was promoted by Life Insurance Corporation in 1989 and a public issue was made in 1994. It launched its maiden GDR offering in 2004. The company enjoys ‘AAA’ rating from CRISIL indicating highest safety with regard to the ability to service interest and repay capital. The Fixed Deposits of the Company are rated FAAA/stable by CRISIL