Delhi Development Body Allows Private Firms to Buy Flats in Bulk
LIC Housing Finance Ltd Reports Impressive Q1 Results
Mumbai, August 2, 2024 – LIC Housing Finance Ltd, one of India’s leading housing finance companies, has announced its standalone audited results for the first quarter ended on June 30, 2024. The company’s Board of Directors approved the results in a meeting held in Mumbai. With total disbursements reaching Rs. 12,915 crores in Q1 FY2025, LIC Housing Finance is showing a remarkable growth of 19% compared to the corresponding period in FY 2024.
Rise in Individual Home Loan Disbursements
The company’s individual home loan segment witnessed significant growth, with disbursements amounting to Rs. 10,932 crores in Q1 FY2025, up by 16% from Rs. 9,419 crores in Q1 FY2024. This increase in disbursements speaks to the continued demand in the housing market. LIC Housing Finance has successfully catered to the needs of homebuyers and provided them with timely financial assistance.
Upsurge in Project Loans
LIC Housing Finance has also displayed impressive growth in project loans. Disbursements for project loans stood at Rs. 521 crores in Q1 FY2025, a notable increase of 108% compared to Rs. 251 crores in Q1 FY2024. The company’s dedication to supporting infrastructural development and the real estate sector makes it a preferred choice for those seeking financial funding for their projects.
Revenue and Net Interest Income Growth
The company’s revenue from operations in Q1 FY2025 reached Rs. 6,783.67 crores, showing a marginal rise compared to Rs. 6,746.51 crores in the same period last year. Meanwhile, LIC Housing Finance’s Net Interest Income (NII) reduced to Rs. 1,989.08 crores during the quarter, as opposed to Rs. 2,209.44 crores in Q1 FY2024.
Maintaining Stable Interest Margin
While the Net Interest Income (NII) decreased, the company still maintained a stable Net Interest Margin (NIM). The NIM for the quarter stood at 2.76%, showing a slight decline from 3.21% in Q1 FY2024 and 3.15% in Q4 FY2024. LIC Housing Finance continues to focus on maintaining a healthy margin to safeguard its financial stability.
Steady Profit Before Tax and After Tax
The company’s Profit Before Tax (PBT) for the quarter was Rs. 1,628.43 crores, down marginally by 1% from Rs. 1,648.99 crores in Q1 FY2024. However, compared to the previous quarter, there is an overall increase in PBT by 10%. The Net Profit After Tax (PAT) for the quarter stood at Rs. 1,300.21 crores, showing a slight decrease from Rs. 1,323.66 crores in the same period the previous year. Nevertheless, the sequential increase in net profit is encouraging, with a growth rate of 19% quarter-on-quarter.
Healthy Growth in Loan Portfolios
LIC Housing Finance’s Individual Home Loan portfolio continued to witness steady growth, reaching Rs. 246,275 crores as of June 30, 2024, as compared to Rs. 231,087 crores in the previous year. This surge in the home loan portfolio reflects the company’s strong market presence and efficient loan granting practices. Its Project Loan portfolio, on the other hand, decreased slightly to Rs. 8,099 crores from Rs. 11,321 crores in the corresponding period.
Change in Asset Provisioning Methodology
With the implementation of IndAS 16, LIC Housing Finance now reports asset classification and provisioning on an Expected Credit Loss (ECL) basis. The provisions for ECL stood at Rs. 5,670.07 crores as of June 30, 2024, contrasting with Rs. 7,590.68 crores as of June 30, 2023. The adoption of ECL for provisioning demonstrates the company’s commitment to maintaining robust risk management practices.
Steady Progress in Solvency and Credit Quality
As of June 30, 2024, LIC Housing Finance’s Stage 3 Exposure at Default improved significantly to 3.30%, compared to 4.96% as of June 30, 2023. This reduction in exposure at default showcases the company’s proactive approach in maintaining strong credit quality, minimizing risk, and ensuring financial stability.
Conclusion
LIC Housing Finance Ltd’s stellar performance in the first quarter of the fiscal year 2025 demonstrates its continued leadership in the housing finance sector. The significant increase in individual home loan and project loan disbursements implies a robust demand for accessible housing finance. As the company maintains a steady interest margin despite evolving market conditions, LIC Housing Finance showcases its ability to navigate challenges while focusing on addressing the needs of its customers efficiently. With plans to further enhance its risk management practices and provide reliable financial solutions to consumers, LIC Housing Finance remains poised for sustained growth in the coming quarters.
