Moneycontrol Bureau
Country's second largest housing finance company LIC Housing Finance's second quarter net profit increased 20.7 percent to Rs 412 crore compared to Rs 341.3 crore in year-ago period, supported by strong net interest income. Higher provisions and tax expenses limited profit growth.
Net interest income grew by 34.8 percent to Rs 717 crore in the quarter ended September 2015 from Rs 532 crore in same quarter last year. NII is the difference between interest earned and interest expended.Net interest margin for the quarter stood at 2.56 percent, increased from 2.23 percent in same quarter last year, the housing finance company said in its statement.
Numbers were higher than analysts' expectations. Profit was estimated at Rs 400.4 crore (up 17 percent) and net interest income at Rs 670 crore (up 26 percent) for the quarter, according to average of estimates of analysts polled by CNBC-TV18.LIC Housing said outstanding mortgage portfolio was Rs 1,14,069 crore at the end of September 2015 against Rs 97,528 crore as on September 2014, registering a growth of 17 percent.
Provisions for bad loans stood at Rs 30 crore in July-September quarter against write back of Rs 19.03 crore in year-ago period but on sequential basis, it declined 32.3 percent.Gross non-performing assets marginally declined to 0.6 percent from 0.63 percent and net NPAs slipped to 0.32 percent from 0.33 percent on year-on-year basis.
Tax expenses in second quarter climbed 32.4 percent to Rs 232.50 crore compared to Rs 175.63 crore paid in corresponding quarter of previous fiscal.
At 14:17 hours IST, the scrip of LIC Housing Finance was quoting at Rs 489.30, up Rs 7.40, or 1.54 percent on the BSE.
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