LIC Housing net in june quarter up 21%

With an improved yield on loans, LIC Housing Finance on Wednesday posted a 21 per cent growth in net profit at Rs 256 crore for the first quarter ended June 30, as against Rs 212 crore a year before.

Total income for the reporting quarter ended June rose 40 per cent to Rs 1,418 crore, as against Rs 1,015 crore in April-June 2010, said chief executive officer V K Sharma.

However, its margins were under pressure. The Net Interest Margins (NIM) for Q1 dipped to 2.78 per cent from 3.01 per cent a year before. With improvement in the availability of resources and reasonable rates on market borrowings, it expects to maintain NIM at 2.7-3.0 per cent in 2011-12, Sharma said.

The company recorded growth of 15 per cent in individual loan disbursements in April-June. Individual loan disbursements stood at Rs 3,468 crore in Q1, as against Rs 3,018 crore in the same period of 2009-10. Total disbursements, including loans, to developers stood at Rs 3,545 crore for Q1, up from Rs 3,392 crore in the corresponding quarter.

The mortgage portfolio as on June 30 was up 32 per cent to Rs 52,876 crore, as against Rs 40,030 crore as on June 30. Gross Non Performing Assets (NPAs) were 0.84 per cent as against 0.92 per cent a year earlier.

Its share price closed 2.8 per cent lower on the Bombay Stock Exchange on Wednesday, at Rs 217.75.

Source: Business Standard