LIC Housing Finance Q3 net up 22%

Its NII for reporting quarter rose by 36% to Rs 747 crore

LIC Housing Finance has posted a 22 per cent rise in net profit for the quarter ended December at Rs 418.90 crore on robust growth in net interest income (NII). It had reported a net profit of Rs 344.35 crore in the October-December period of last financial year.

Its NII in the December quarter rose 36 per cent to Rs 747 crore, compared to Rs 549 crore in October-December 2014. Its net interest margin (NIM) improved to 2.58 per cent in the December quarter, from 2.2 per cent in Q3FY15.

Sunita Sharma, managing director & chief executive officer, said, the continued focus on growth with profitability has resulted in improvement in margins. The cost of funds declined on easing of interest rates in market.

The commission and brokerage expenses grew to Rs 41.68 crore, from Rs 28.82 crore. The provisions and write-offs shot-up to Rs 34.42 crore from Rs 6.8 crore.

The outstanding mortgage loan book (individual loans plus credit to developers) grew 15 per cent to Rs 1, 17, 396 crore by end-December from Rs 1, 01, 944 crore a year ago. The individual loan portfolio as on December 31 rose 15 per cent at Rs 1,14,305 crore,  against Rs 99,362 crore at the end of December 2014. Loan to developers grow 20 per cent to Rs 3, 091 crore from Rs 2, 582 crore.

Sharma said the company had set a up separate vertical for the affordable housing finance segment, as the business opportunities are expected to grow substantially due to thrust on housing for all.