LIC Housing Finance Ltd has reported a robust performance for the first quarter ended June 30, 2024, with significant increases in home loan disbursements. According to the company’s audited standalone results, total disbursements surged to Rs. 12,915 crore, marking a notable 19% rise from Rs. 10,856 crore in the same period of FY 2024. The standout segment was Individual Home Loans, which saw a 16% growth, reaching Rs. 10,932 crore compared to Rs. 9,419 crore in Q1 FY2024.
Project loan disbursements also saw a remarkable increase, soaring by 108% to Rs. 521 crore, up from Rs. 251 crore in the previous year. This growth reflects a strong demand across both individual and project loan segments. Despite these gains, the company’s revenue from operations grew modestly to Rs. 6,783.67 crore, up from Rs. 6,746.51 crore in Q1 FY2024. Net Interest Income (NII) for the quarter was Rs. 1,989.08 crore, a decline from Rs. 2,209.44 crore year-on-year. The Net Interest Margin (NIM) decreased to 2.76% from 3.21% in Q1 FY2024 and 3.15% in Q4 FY2024. Profit Before Tax (PBT) stood at Rs. 1,628.43 crore, slightly down from Rs. 1,648.99 crore in the same period last year but up by 10% compared to the previous quarter.
Net Profit After Tax (PAT) for Q1 FY2025 was Rs. 1,300.21 crore, compared to Rs. 1,323.66 crore in the corresponding quarter of FY2024. However, PAT increased by 19% sequentially from the previous quarter. The Individual Home Loan portfolio reached Rs. 2,46,275 crore as of June 30, 2024, up by 7% from Rs. 2,31,087 crore a year earlier. Conversely, the Project Loan portfolio saw a decline to Rs. 8,099 crore from Rs. 11,321 crore. The total outstanding portfolio grew by 4%, standing at Rs. 2,88,665 crore compared to Rs. 2,76,440 crore in the previous year. Asset classification and provisioning under IndAS 16 showed provisions for Expected Credit Loss (ECL) at Rs. 5,670.07 crore, a decrease from Rs. 7,590.68 crore the previous year. The Stage 3 Exposure at Default improved to 3.30% from 4.96% a year ago, reflecting better asset quality management.
Overall, LIC Housing Finance’s performance in Q1 FY2025 highlights its resilience and continued focus on expanding its loan portfolio, despite some challenges in net interest income and margin pressures.
