LIC Housing Finance has announced its Q1FY08 results. PAT was lower due to higher provisions, NII continues to grow strong.
Highlights
Net interest income up by 59.2% , higher than estimates, primarily on the back of hike in PLR rates by 75 bps in May and expansion of loan book by 18%
Net interest margins stood at 2.34% vs 1.7% a year ago,dropped 16bps qoq due to rise in cost of funds (8.6%)
Net profit grew by 24.6% yoy - lower than our estimates, mainly due to higher provisions
Growth in disbursements 12% yoy, with 16% yoy growth in sanctions
Gross NPAs at 4.06% vs 3.8% yoy at Rs 739cr, though management confident of target 2.5% being acheived by year end
Net NPAs at 2.6%, signifying higher provisions in 1st quarter, as expected
Higher taxes this quarter as the benefit of tax break on profits U/S 36 (i)(viii) have been reduced from 40% to 20%
Management has decided to raise resources from retail depositors via a Fixed Deposit scheme. This is the first time since its inception in 1989 that the housing finance company is taking the FD route for mobilizing funds
The Company has opened a representative office at Kuwait recently, enhancing distribution reach
