LIC Housing Finance Q1 net up 7% at Rs 407 cr

Company made a provision of Rs 92 cr on account of aging of old project loan NPAs

LIC Housing Finance has posted a 6.7% rise in its net profit for the quarter ended June 30, 2016, on the back of a strong growth in its net interest income.

The company posted profit after tax of Rs 407.84 crore for Q1 of FY17 compared to Rs 382.13 crore posted in same quarter last fiscal.

Net interest margins for the Q1 FY17 stood at 2.61% as against 2.41% for Q1 FY16. Their net interest income was Rs 825 crore, registering a growth of 25% over the same period last year.

Sunita Sharma, MD & CEO, LIC Housing Finance said, "We have registered a healthy disbursement growth rate, robust NII growth delivering higher Net Interest Margins and maintained a very good asset quality. We are confident of building on this and continue to remain positive on our future performance."

During the quarter, the company made a provision of Rs 92 crore on account of aging of old project loan NPAs which had already been classified as NPAs as per norms. Total Gross non-performing assets (NPAs) for the company including NPAs on project loans was 0.59% as on June 30, 2016 as against 0.60% as on June 30, 2015. Net NPAs stood at 0.28% as on June 30, 2016 as against 0.33% as on June 30, 2015.

The outstanding mortgage portfolio as on June 30, 2016 was Rs 127,437 crore as against Rs. 110411 crore on June 30, 2015, thus registering a growth of 15%. The individual loan portfolio stood at Rs. 123681 crore as against Rs. 107704 crores, a growth of 15%.