LIC Housing Finance Limited on August 3 reported a 43 percent jump in standalone net profit at Rs 1,324 crore for the quarter ended June 30, 2023 on the back of strong demand in housing loans. The company had posted a net profit of Rs 925 crore in the year-ago period.
The company's net interest income (NII) grew 38 percent to Rs 2,252 crore in the quarter under review from Rs 1,628 crore in the last fiscal.
The stage 3 exposure at default (gross non-performing asset) as of June 30, 2023, stood at 4.98 per cent against 4.96 per cent as of June 2022. However, net NPA decreased to 2.99 percent from 3.01 percent on-year.
LIC Housing Finance's total expenses in the said quarter rose 23 percent, with finance costs rising 23 percent to Rs 4,494 crore, while interest income rose 28 percent to Rs 6,704 crore.
Housing demand in India has risen in the post-pandemic period, as a growing middle class looks to invest in real estate despite higher interest rates and home prices.
The Reserve Bank of India (RBI) has raised key interest rates by 250 basis points since May 2022, with two pauses, while June retail inflation rose to 4.81 percent, snapping four months of easing.
Meanwhile, shares of LIC HFL closed 4.86 percent lower at Rs 393.90 apiece on BSE ahead of the earnings.
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