LIC Housing posts PAT of Rs 1,368 crore in Q4; NIM declines to 2.86%

LIC Housing Finance has reported 25% increase in net profit to Rs 1367.96 crore on a 5% rise in revenue from operations to Rs 7283.33 crore in Q4 FY25 as compared with Q4 FY24.

Net interest income (NII) fell by 3% to Rs 2166.44 crore in the quarter ended March 2025 from Rs 2237.60 crore in the quarter ended March 2024. Net interest margin (NIM) for the quarter stood at 2.86% as against 3.15% for Q4 FY 2024.

Profit before tax in Q4 FY25 stood at Rs 1,769.58 crore, up by 20% from Rs 1,476.18 crore in Q4 FY24.

Total disbursements for the fourth quarter were were at Rs 19,156 crore in Q4 FY2025, as against Rs 18,232 crore for the corresponding period in FY 2024, up by 5%. Out of this, disbursements in the Individual Home Loan segment were at Rs 15,383 crore (up 8% YoY) and Project loans were at Rs 875 crore (down 42% YoY).

The provisions for expected credit loss (ECL) stood at Rs 4,899.03 crore as on 31 March 2025, as against Rs 6,270.06 crore as on 31 March 2024. The Stage 3 exposure at default as of 31 March 2025 stood at 2.47% against 3.31% as of 31 March 2024 and 2.75% as on 31 December 2024.

The Individual Home Loan portfolio stood at Rs. 2,61,562 crore as on 31 March 2025, up by 7% YoY. The Project loan portfolio stood at Rs 9,213 crore as on 31 March 2025, up by 15% YoY. The total outstanding portfolio grew at 7% to Rs. 3,07,732 crore from Rs 2,86,844 crore in the earlier year.

For FY25, LIC Housing has registered a net profit of Rs 5,429.02 crore (up 14% YoY) and revenue from operations of Rs 28,050.14 crore (up 3% YoY).

Tribhuwan Adhikari, managing director & chief executive officer of LIC Housing Finance, said: "The housing finance sector has been witnessing strong credit growth with tier-2 and tier-3 cities as main drivers.

This has provided a momentum to our efforts towards deeper penetration and improving financial inclusion across the country. Our constant focus towards customer service, effective cost management and improvement in asset quality have contributed to stable margins and improved profitability.

As we move into the next fiscal, we remain optimistic about our industry growth, especially in the affordable segment. This should give us a positive road map over the upcoming 12 months.

LIC Housing Finance is the largest housing finance company in India. It has one of the widest networks of offices across the country and representative office in Dubai. In addition, the company also distributes its products through branches of its subsidiary LIC HFL Financial Services.

The scrip declined 1.46% to currently trade at Rs 615.80 on the BSE.

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