7% increase in net profit for Quarter 1 posted by LIC Housing Finance
LIC Housing Finance has announced an increase of 7.39% in their net profit for the first quarter of the financial year that ended on 30 June 2019. The consolidated net profit of LIC Housing Finance is at Rs.609.13 crore compared to the Rs.567.18 crore the same time last year.
According to LIC Housing Finance, the total revenue of the company for the first quarter also increased to Rs.4,815.57 crore compared to the Rs.4,068.93 crore at the same time last year. Siddhartha Mohanty, the MD & CEO of LIC Housing Finance, said that despite the challenging business environment, the company’s loan book and home loan segment grew consistently. He further added that the company is focusing on the recovery aspect and asset quality for the current year. The net profit of the company for the fourth quarter of the last financial year grew by 16.7%. The net profit of the company was at Rs.693.58 crore for the fourth quarter of 2018-2019 compared to the Rs.594.34 net profit at the same time the previous fiscal. According to Siddhartha Mohanty, an additional deduction of Rs.1.5 lakh on home loan interest will make it more popular among consumers.
28 August 2019
FY19 net profit of LIC Housing Finance grew by 21 percent
LIC Housing Finance, an arm of life insurance behemoth LIC has informed that its FY19 net profit grew by 21 percent. On Saturday, the mortgage lender posted a 17% surge in the net profit that was backed on a jump in core income. It has also reported an increase in asset quality stress. It needs to be mentioned here that the net interest income grew on the back of a 16% portfolio growth and 0.10% jump in net interest margins.
Vinay Sah, the company’s managing director and chief executive has stated that the company was targeting a 15% growth in assets during FY20. He was hopeful that the lender will be able to raise Rs.60,000 crore from the Non-Convertible debentures route, if the rates remained favorable.
The lender informed that the gross non-performing assets from the project loans segment have doubled to 1.53%. Sah attributed this to stressed accounts slipping into NPAs.
It is noteworthy to mention here that as per the managing director and the chief executive of the company the average ticket size has moved up by 10% to Rs.22 lakh during the fiscal. He added that the bulk of the demand was coming from non-metro areas.
8 May 2019
LIC Housing Finance expects over 15% loan growth during FY-2019
According to reports, Vinay Sah, Managing Director and CEO of LIC Housing Finance Limited has reportedly made a statement that the home loan lending firm is expected to see a rise in loan growth up to 15% during the financial year 2019. Sah stated that with the growth in retail business until the third quarter holding its ground around 6% - 8%, the lending firm expects a rise in loan growth in Q4, considering the period to be a high volume sector. According to sources, the company had processed up to 21,000 home loans for affordable housing during the last financial year. As per the current stats, the company has been able to already process 31,000 housing loans till February. This amounts for about 20% of the company’s total sales. He further added that it was Tier I and Tier II cities where most of the company’s sales had happened where there is enough scope for affordable housing.
13 March 2019
LIC housing expects a 15% growth in housing disbursement
The MD and CEO of LIC Housing, Vinay Shah has said that the company expects a minimum of 15% growth in housing loan disbursements. The liquidity status has relaxed in the present months as compared to what it was between October and December. As per Shah, LIC Housing has been getting money at a higher rates recently because of its AAA rating. The spreads of LIC Housing Finance have been stable over a long time now. Last April, the company had raised the lending rates by 70 basis points.
12 March 2019
LIC Housing Finance Limited ties up with Indian Mortgage Guarantee Corporation
LIC Housing Finance Limited (LICHFL) announced on Monday that the home loan lender has partnered with India Mortgage Guarantee Corporation (IMGC) in order to offer special schemes where LIC home loan borrowers will be allowed to repay loans until they attain the age of 75 years. The partnership is expected to allow the bank to accommodate more home loans borrowers with enhanced home loan eligibility and extended repayment tenures. The tie-up will also help LICHFL to improve market penetration while combating with the non-performing assets (NPAs). The management announced that LICHFL will also be provided with mortgage guarantee. Mortgage guarantee is a financial product that covers losses that arises for financial institutions due to defaulting on mortgage loan. This will allow the lender to improve its eligibility criteria and extend home loan repayment tenure while easing restrictions on the applicants’ profile who face loan rejection due to work profile, credit history and other reasons unspecified by most financial institutions. Managing Director and CEO LICHFL Vinay Sah said that the the tie-up with IMGC will help the bank accommodate more home loan borrowers while mitigating risk across lending categories.
6 March 2019
LIC Housing Finance Offers Concessional Home Loan for Kerala Flood Victims
In order to aid the flood affected victims in Kerala, LIC Housing Finance is now offering home loans at lower interest rates for reconstruction and renovation of homes damaged in the floods. Home loans up to Rs.15 lakh can now be availed at an interest rate of 8.50% under the Kerala Flood Scheme. According to reports, the loan will be offered to customers who own properties in flood affected areas for repairing, reconstruction or renovation of the damaged houses. Individuals who wish to avail this benefit need to apply for the loan before 31 OCtober 2018. Additionally, the institution has also decided to waive charges delayed payments of EMIs for the month of August and September 2018.
4 September 2018
LIC Housing Finance Reports a Drop in Profit in Q3
While most housing finance companies showed a rise in profit in Q3, 2018, LIC housing finance reported a decline in profit of 1.6% when compared to the same period last year. This is speculated to be caused due to lower project loans and decline in the quality of asset. LIC housing finance reported a profit of Rs.491 crore in Q3 of this year, while it had reported a profit of Rs.499 crore the previous year during the same time period. It is also speculated that lower disbursements in finance with regard to the projects was what dragged down the profit of the housing company.
8 February 2018
LIC Housing Finance Limited sees a 2% Decline in Net Profit
LIC Housing Finance Limited, a leading financial institution in the home loan sector, recently released a statement stating that it witnessed a 2% decline in net profit for the third quarter of the fiscal year. The amount now stands at Rs.491.07 crore and is a result of poor asset quality and a decline in net interest income.
However, the revenue grew 6% to Rs. 3,768 crore, taking other income into consideration. The company’s home loan portfolio also swelled by 15%, taking its taking value to Rs.1,56,176 crore.
Speaking of company’s non-performing assets (NPAs), its gross NPA ratio increased to 0.87%, from 0.56%. The net NPAs also witnessed a drastic surge to 0.49% from 0.27%.
30 January 2018
Demand for LIC Housing Finance Loans to Increase
According to the MD and CEO of LIC HFL, Vinay Sah with the government relaxing the eligibility criteria for carpet area for interest subsidy for MIG (Middle Income Group) section, the demand for affordable home loans and average loan ticket size is going to increase. Earlier, only smaller flats and an income slab of a maximum of Rs.18 lakh were eligible for such subsidy. But with the government prioritising affordable housing, a large section of people is now eligible for the subsidy. The subsidy relaxation was announced in December 2016. Since then, LIC has sanctioned home loans for 1.10 lakh affordable housing units.
26 December 2017
LIC HFL made more than 8 Percent Profit in Second Quarter
In the second quarter, LIC Housing Finance Limited made a profit of 8.8%. The profit stands at Rs.538.1 crore. During the same quarter, last year, the profit stood at Rs.494.8 crore. The income from net interest might go up to Rs.972.9 crore. It suggest that there will be a rise by 12.4%. Last year, during the same time, the net interest income stood at Rs.865.7 crore.
According to the analysts, in case the loan growth climbs up beyond 15%, the interest margin goes above 2.65% and the non-performing assets (gross) is below 0.8%, then it will be accepted by the Street, positively.
2 November 2017
LIC Housing Finance Positive about its Loan Growth Rate
The stock of the LIC Housing Finance has seen a downtrend with the company’s loan growth recorded at about 15%, which is slightly less than most of its competitors.
Vinay Sah, MD & CEO of LIC Housing Finance, who is optimistic about the company’s loan growth rate, opines that the better growth of the peer companies is due to their low base rate. He anticipates that the company’s loan growth will remain in excess of 15-16% in the coming quarters.
LIC Housing Finance, which so far financed about 4400 affordable houses in FY17, has an average ticket size of Rs. 22 lakh, which according to Sah, is a decent size in the affordable housing segment, where the average ticket size is 7-8 lakh.
For Q1FY18, the company recorded 2.5% net interest margins (NIM) compared to 3-3.25% for Dewan housing and Indiabulls Housing and 4% for HDFC.
According to the CEO, NIMs primarily depend on the cost of borrowings – the lesser the cost the higher the NIM, and LIC’s cost of borrowings in currently going down. He also says that though their lending rates are quite low they still work to improve their NIMs.
Vinay sounded less bothered about the rising gross non-performing assets (GNPAs), which are up at 0.72% in Q1FY18 from 0.43% in the fourth quarter of FY17, as the percentage is quite small. He, however, mentioned that the company will keep a check and analyse the portfolio.
19 September 2017