LIC Housing Finance net profit jumps 19% to Rs 382 crore in Q1

Mortgage lender LIC Housing Finance on Monday reported 19% jump in net profit at Rs 382.13 crore for the April-June quarter on higher margins and better asset quality.

The company had reported profit after tax (PAT) of Rs 322.31 crore in the same period last year.

"We had better margins because of our strategies to have better asset quality, better asset mix... we have improved our better yielding products," its Managing Director and CEO Sunita Sharma told reporters here.

The net interest margins in the quarter stood at 2.41% as against 2.19% in the same period last year.

The rise in profit was also on account of reduction in borrowing cost which fell to 16% from 19% as of March 31, 2015.

"We have decided to reduce bank borrowing from 25% to 19% in FY15, and now it is at 16%. We are reducing the high cost borrowing and increasing the low cost borrowing, that is, we are raising funds through non convertible debentures (NCDs)," Sharma said.

The company has a target to raise Rs 40,000 crore through NCDs in FY16. It raised Rs 7,000 crore in the first quarter.

Total gross NPAs on developer loans was 0.60% as against 0.80%. Gross NPAs in individual segment was 0.36% as against 0.40%.

Net NPAs stood at 0.33% as against 0.49% last year.

Total income was up 17% at Rs 2,965 crore as against Rs 2,544 crore.

During the quarter, total loan disbursed was Rs 6,124 crore as against Rs 5,560 crore for the first quarter of FY15.

The outstanding mortgage portfolio was up 18% at Rs 1,10,411 crore as against Rs 93,609 crore.

The individual loan portfolio stood at Rs 1,07,704 crore as against Rs 91,058 crore.

Developer loan portfolio was Rs 2,708 crore as against Rs 2,551 crore.