LIC Housing Fin net up 37%

LIC Housing Finance, the country’s second-largest mortgage lender, recorded a net profit of Rs 234.21 crore during the quarter ended September, a 37 per cent increase compared to Rs 171.25 crore in the corresponding period last year.

Interest income from housing loans grew 33 per cent to Rs 1,043 crore, against Rs 785 core in the second quarter of 2009-10. Its net interest income went up to Rs 305 crore from Rs 187 crore in July-September 2009, a 63 per cent increase.

The company sanctioned loans of Rs 7,667 crore, thus registering a growth of 43 per cent. Also, it disbursed loans of Rs 5,101 crore, up 36 per cent over the second quarter of the previous year.

The net interest margin (NIM) was 2.93 per cent during the quarter ended September, against 2.44 per cent for the same period previous year.

The company’s total income, including other income, grew by 32 per cent to Rs 1,107 crore for the quarter ended September, against Rs 839 crore during the same period last year.

For the six months ended September, the company’s net profit went up by 51 per cent to Rs 446.23 crore, compared to Rs 295.08 crore in the corresponding period last year.

During the first half, the company sanctioned Rs 13,015 crore and disbursed Rs 8,493 crore, a growth of 46 per cent and 37 per cent, respectively.

“Cost of funds have gone up by 100 basis points (bps) since March. We expect it to go up by another 15-20 bps. As a result, the NIM had dropped, compared to the fourth quarter of 2009-10,” said R R Nair, director and chief executive, LIC Housing Finance.

The company is looking at raising Rs 11,000 crore in the second half of this financial year. It has already raised Rs 9,000 crore this year.

Its shares closed at Rs 1,458.05, up 0.96 per cent on the Bombay Stock Exchange.