In the quarter ending June 2022, LIC Housing Finance’s after-tax profit increased six-fold from Rs 153 crore to Rs 925 crore, driven by higher individual loans, lower charges impairment due to the decline in non-performing assets (NPA), and an increase in the net interest margin (NIM).
At the end of June, the value of home loans to individuals increased by 15% year-on-year, reaching 2.09 million rupees.
Profits rose as impairment charges fell 63% to Rs308 crore from Rs830 crore a year earlier. Gross NPAs decreased from 5.93% as of June 30, 2021 to 4.96%.
The NIM, or the distinction between the return on loans and the price paid for funds, rose to 2.54% from 2.20% a year ago.
The cost of funds has decreased from 6.88% to 6.70% over the past year.
The company’s project loan portfolio declined by 20% to Rs 12,443 crore as of June 30, 2022 from Rs 15,601 crore a year earlier.
The company improved revenue from a year ago, according to CEO Viswanatha Gowd, with collection efficiency of 99% despite a significant drop in revenue last year and typical economic activity.