LICHF posts 33% rise in net profit to Rs 158 crore

LIC Housing Finance (LICHF), the country’s second-largest housing finance company, has reported a 33.14 per cent increase in its fourth quarter net profit at Rs 157.55 crore as against Rs 118.09 crore reported in the year-ago quarter.

The company’s total income rose 30.27 per cent to Rs 790.47 crore during the quarter ended March 31, 2009, as against Rs 606.76 crore in the year-ago period.

Net interest income (NIM) grew by 27.10 per cent to Rs 211 crore compared with Rs 166 crore a year ago.

“The NIM has been slightly on the lower side due to higher cost of funds in the fourth quarter. But, with situation improving, we would be able to achieve the target of more than 30 per cent in the coming quarters,” said LICHF Chief Executive Officer R R Nair.

For the year ended 2008-09, the company posted a net profit of Rs 531.62 crore, an increase of 37.30 per cent, while its total income rose 34 per cent from Rs 2,146.27 crore to Rs 2,880.17 crore.

During the period, total disbursements stood at Rs 8,762 crore, up 21 per cent from Rs 7,071 crore. The company’s outstanding mortgage portfolio as on March 31 was Rs 27,679 crore, up 26 per cent as against Rs 21,936 crore reported in the same period a year ago.

Similarly, the net non-performing assets as a percentage of the firm’s total loans improved to 0.21 per cent as against 0.64 per cent. Consequently, total provisioning in 2008-09 declined to Rs 5.25 crore from Rs 24.29 crore the previous year.

Speaking about the borrowing plans, Nair indicated that the company is planning to raise around Rs 12,000 crore in 2009-10, adding that the company plans to grow its disbursement by more than 25 per cent.

“Last year, we borrowed more than Rs 7,000 crore and this year, we would require another Rs 12,000 crore through term loans, non-convertible debentures, public deposits and refinance from National Housing Bank for our growth plans,” he added.