The Board of Directors of LIC Housing Finance announced its un-audited results for the first quarter ended on June 30, 2012 following its approval by the Board of Directors in a meeting held in Mumbai on July 24, 2012.
The Company has recorded a healthy growth in business during the first quarter ended June 2012.
In the Individual Loan category, the Company sanctioned Rs 49bn , a growth of 33 % over the corresponding period of the previous year, whereas the disbursements in that category was Rs 44.7bn, a growth of 29% over the corresponding period of the previous year. In the Developer Loan category, the Company sanctioned Rs 4.08bn, as against Rs 50mn in the corresponding period of the previous year, whereas the disbursements in that category was Rs 3.21bn, against Rs 770mn for the corresponding period of the previous year.
The Company's total Income including other income for the first quarter ended June 2012 was Rs.17.67bn as against Rs.14.18bn during the same period last year, a growth of 25%.
Net profit for the Q1 was Rs.2.2775bn as compared to Rs.2.5650bn in the corresponding period last year. The drop in Net profit is primarily attributable to the decline in the Developer Loan Portfolio as compared to the previous year and a lower than expected Developer Loan disbursals on account of the overall economic scenario.
Net Interest Margins for the Q1 stood at 2.18% against 2.44% for the quarter ended 31 March 2012, mainly on account of lower income from Developer Loans.
The Outstanding Mortgage Portfolio as on June 30, 2012 was Rs.656.44bn as against Rs.528.76bn on June 30, 2011, thus registering a growth of 24%. The Individual Loan portfolio stood at Rs 626.02bn as against Rs 488.51bn, a growth of 28%. The Developer Loan portfolio stood at Rs 30.42bn as on June 30, 2012 as against Rs 40.25bn as on June 30, 2011, a decline of 24%.
The Gross NPAs of the Company stood at 0.71% on June 30, 2012 as against 0.84% as on June 30, 2011. Net NPAs were 0.38% as against 0.39% for the corresponding dates.
LIC Housing Finance, Director & Chief Executive, V. K. Sharma, said “Business environment has been very challenging; however, we have been able to grow our new disbursals despite the odds and are confident of maintaining a healthy growth rate for the rest of the year. Margins have been under strain owing to the high interest rate regime and high borrowing costs that has prevailed during the quarter and a lower Developer Loan portfolio. In Q1, Developer Loan disbursals have started to improve, which is likely to help increase the margins going forward. The Asset quality of the Company continues to be good even in this environment.”