Results for LIC Housing Finance's first quarter showed a net profit increase of 43% to Rs 1,324 crore

4 Aug 2023 , 01:27 AM

In response to robust demand for house loans, LIC Housing Finance Limited on August 3 reported a 43% increase in standalone net profit at Rs 1,324 crore for the quarter ended June 30, 2023. In the same period last year, the company reported a net profit of Rs 925 crore.

Net interest income for the company increased by 38% to Rs 2,252 crore in the quarter under review from Rs 1,628 crore in the previous fiscal.

As of June 30, 2023, the stage 3 exposure at default (gross non-performing asset) was 4.98% as opposed to 4.96% in June 2022. Net NPA, however, dropped from 3.01% to 2.99% year over year.

In the aforementioned quarter, LIC Housing Finance’s overall expenses increased by 23%, with finance costs increasing by 23% to Rs 4,494 crore and interest income increasing by 28% to Rs 6,704 crore.

Despite increasing mortgage rates and home costs, the post-pandemic period has seen an increase in housing demand in India as a burgeoning middle class looks to invest in real estate.

Since May 2022, with two breaks, the Reserve Bank of India (RBI) has increased benchmark interest rates by 250 basis points. In June, retail inflation jumped to 4.81%, ending a four-month falling trend.

Ahead of the earnings, LIC HFL shares on the BSE finished 4.86% lower at Rs 393.90 a share.

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