Results for LIC Housing Finance's first quarter reported a net profit increase of 43% to Rs. 1,324 crore

In response to robust demand for house loans, LIC Housing Finance Limited on August 3 announced a 43% increase in standalone net profit at Rs 1,324 crore for the quarter ended June 30, 2023. At the same time last year, the business reported a net profit of Rs. 925 crore.

Net interest income for the company increased by 38% to Rs 2,252 crore in the quarter under review from Rs 1,628 crore in the previous fiscal.

Stage 3 exposure at default (gross non-performing asset) was 4.98% as of June 30, 2023, compared to 4.96% in June 2022. Net NPA, however, dropped from 3.01% to 2.99% YoY.

LIC Housing Finance's total expenses increased by 23%, with finance costs increasing by 23% to Rs 4,494 crore and interest income increasing by 28% to Rs 6,704 crore.

Despite increasing interest rates and property costs, the post-pandemic period has seen an increase in housing demand in India as a growing middle class wants to invest in real estate.

Since May 2022, with two breaks, the Reserve Bank of India (RBI) has increased benchmark interest rates by 250 bps. In June, retail inflation jumped to 4.81%, ending a four-month falling trend.

Source: Media Reports