LIC Housing Fin profit up 27 per cent

LIC Housing Finance has reported a 26.70 per cent rise in its net profit to Rs 134.33 crore for the quarter ended December 31, 2008, compared with Rs 106.02 crore in the corresponding quarter last year.

While the company’s total disbursals for the quarter increased by 18 per cent to Rs 1,944 crore as against Rs 1,652 crore, it was lower than the over 35 per cent growth achieved in the September 2008 quarter when it disbursed Rs 2,159 crore.

The main reason behind this might be attributed to the 40 per cent higher interest expenditure incurred during the quarter, which stood at Rs 534.46 crore, compared with Rs 381.75 crore in the year-ago period.

“Last quarter was the most challenging in terms of business environment and cost of funds, hence the disbursals were a touch lower. However, despite this, we have maintained our profit growth due to increased operational efficiency, higher margins and treasury management,” LIC Housing Finance Director and Chief Executive Officer R R Nair said.

Total income increased by 39.41 per cent to Rs 765.09 crore as against Rs 548.79 crore a year ago. Similarly, operating profit stood at Rs 180.65 crore, up 36.61 per cent from Rs 132.16 crore in the corresponding period last year.