Tag: LIC Housing Finance

LIC Housing Finance forecasts 15% loan book growth in FY25

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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LIC Housing Finance is anticipating 15% expansion in its loan book for the financial year 2025. Tribhuwan Adhikari, the Managing Director and CEO of LIC Housing Finance, said while there has been a slowdown in the growth of Assets Under Management (AUM) in the current financial year, it was largely due to the organisational restructuring and technological enhancements undertaken by the mortgage lender during the year.

The non-banking finance company reported better than estimated earnings for third quarter in terms of net interest income (NII) and profit after tax (PAT). NII is the difference between the revenue generated from lending activities and the cost of funding those loans.

NII rose nearly 31% year-on-year (YoY) to ₹2,097 crore from ₹1,606 crore. PAT grew 142% to ₹1,163 crore YoY from ₹480 crore. The net interest margin improved to 3% from 2.4% a year ago.

The AUM growth was modest at around 5% YoY this quarter at ₹2,81,206 crore. But Adhikari is confident about a better performance in the upcoming quarter led by the technological upgrades and restructuring efforts.

“Q4 (fourth quarter) is going to be better much better than Q3 (on AUM). Looking forward, I think we will start delivering in FY25. The technology upgrade the restructuring that will bear fruit in the quarter of FY25 and I see a guidance of at least a growth of 15% for FY25,” he said.

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Addressing concerns about the current ticket size of loans, Adhikari affirmed plans to increase it gradually, although not expecting a substantial leap in the near term.

Adhikari said that the spreads are currently at 2% and are expected to remain stable going forward. While acknowledging potential pressure on NIMs, he reassured stakeholders that any impact would likely be marginal, estimating a maximum decline of 10 to 15 basis points. He expressed confidence in maintaining NIMs above 2.8%.

Brokerage firm CLSA downgraded the stock to ‘Outperform’ from ‘Buy’ while raising the target price to ₹725 a share. CLSA pointed out that the Q3 spreads are high but are expected to normalise. It sees limited rerating potential given sluggish growth and normalised return on equity (RoE) of 12%-13%.

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LIC Housing has a market capitalisation of around ₹34,730 crore. The stock has gained nearly 63% over the past year. 

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

LIC Housing Finance Q2: Profit jumps nearly four-fold to ₹1,188 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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LIC Housing Finance on Wednesday reported a nearly four-fold rise in net profit to Rs 1,188 crore for the September quarter.

The housing finance subsidiary of LIC had earned a profit of ₹305 crore in the year-ago quarter.

Total revenue increased to ₹6,753 crore in the second quarter of the current fiscal from ₹5,086 crore in the year-ago period, LIC Housing Finance said in a regulatory filing.

The lender’s interest income also increased to ₹6,707 crore from ₹5,049 crore a year ago.

Net interest income of the mortgage firm increased to ₹2,107 crore as compared to ₹1,150 crore in the year-ago period.

On the asset quality side, the lender’s gross Non-Performing Assets (NPAs) stood at 4.3% of gross advances in September over 4.9% a year ago.

The net NPA declined marginally to 2.59% against 2.83% in the year-ago period.

Net interest margin of the company increased to 3.04% as against 1.78% in the same quarter a year ago.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

LIC Housing Finance takes possession of Mumbai property whose guarantor is Essel Group’s Subhash Chandra

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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LIC Housing Finance has taken symbolic possession of a property in Churchage, Mumbai, whose guarantor was media mogul Subhash Chandra, for non-payment of dues.

In a newspaper advertisement published on Saturday, September 30, LIC Housing Finance said it has issued a demand notice calling upon Vasant Sagar Properties, as well as PAN India Infraprojects and the guarantor Chandra to repay the aggregate amount of over Rs 570 crore within two months from the date of receipt of the notice.

LIC Housing Finance said the guarantors and borrowers had failed to repay the amount and so it took symbolic possession of the assets on September 28, under the SARFESI Act.

LIC Housing Finance said the borrowers/guaranters and the public are cautioned “not to deal with the properties and any dealings with the properties will be subject to the charge of LIC Housing Finance for an amount of Rs 570,50,43,723.11, and interest and ither charges, etc, thereon,” the newspaper advertisement stated.

The property mentioned is a plot located in the Backbay Reclamation Estate in Churchgate, Mumbai.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

LIC Housing Finance Q1 Results | Net profit surges to Rs 1,324 crore, beats estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mortgage lender LIC Housing Finance Ltd (LICHFL) on Thursday reported a 43 percent year-on-year (YoY) jump in net profit at Rs 1,323.7 crore for the first quarter that ended June 30, 2023.

In the corresponding quarter last year, LIC Housing Finance posted a net profit of Rs 925.5 crore, the company said in a regulatory filing. CNBC-TV18 Polls had predicted a profit of Rs 1,061 crore for the quarter under review.

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Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 38.4 percent, coming at Rs 2,252.3 crore against Rs 1,627.7 crore in the corresponding quarter of FY23.

The results came after the close of the market hours. Shares of LIC Housing Finance Ltd ended at Rs 393.90, down by Rs 20.10, or 4.86 percent on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

LIC Housing Finance Q4 numbers beat estimates, declares dividend

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mortgage lender LIC Housing Finance Ltd (LICHFL) on Tuesday, May 16, reported a 5.5 percent year-on-year (YoY) increase in net profit at Rs 1,180.3 crore for the fourth quarter that ended March 31, 2023.

In the corresponding quarter last year, the company posted a net profit of Rs 1,118.6 crore. CNBC-TV18 Polls had predicted a profit of Rs 775.4 crore for the quarter under review.

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Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 22.1 percent year-on-year to Rs 1,990.3 crore, against Rs 1,630 crore in the corresponding period of the preceding fiscal. CNBC-TV18 Polls had predicted NII of Rs 1,660.2 crore

The board of directors of the company approved the recommendation of dividend for the financial year 2022-2023 of 425 percent i.e. Rs 8.5 per equity share of Rs 2 each.

Shares of LIC Housing Finance Ltd ended at Rs 395.10, up by Rs 13.25, or 3.47 percent on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MR Kumar resigns as chairman of LIC Housing Finance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mortgage lender LIC Housing Finance Ltd (LICHFL) on Tuesday, March 14, said M.R. Kumar has resigned as chairman from the board of the company.

“…MR Kumar, chairman [Non-Executive (Nominee) Director] has tendered his resignation from the Board of the LIC Housing Finance consequent upon attainment of superannuation from the services of Life Insurance Corporation of India with effect from the end of the office hours on March 13, 2023,” the company said in an exchange filing.

Yesterday (March 13), Kumar completed his term as the Life Insurance Corporation (LIC) Chairman. Kumar’s term as chairman had been extended twice. First, the government extended the term from June 30, 2021, till March 13, 2022, and then till March 13, 2023.

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The LIC subsidiary reported a massive 37 percent year-on-year plunge in net profit to Rs 480.30 crore in the December quarter as the company made additional provisions for expected credit loss, despite improvement in asset quality.

The company has made additional prudential provisions of Rs 7,285.09 crore during the quarter, taking its coverage rate to 51 percent against Rs 5,715.76 crore in December 2021 and Rs 6,522 crore in September 2022.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

LIC Housing Finance posts 38% decline in Q3 net profit at Rs 480.3 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mortgage lender LIC Housing Finance Ltd (LICHFL) on Monday reported a 37.4 percent year-on-year (YoY) decline in net profit at Rs 480.3 crore for the third quarter ended December 31, 2022.

In the corresponding quarter last year, the company posted a net profit of Rs 767.3 crore. CNBC-TV18 Polls had predicted a profit of Rs 728.7 crore for the quarter under review.

During the quarter, the net interest income (NII) jumped by 10.4 percent to Rs 1,605.9 crore gainst Rs 1,454.6 crore in the corresponding period of the preceding fiscal. CNBC-TV18 Polls had predicted a net interest income of Rs 1,525.1 crore for the quarter under review.

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“Net profit after tax stood at Rs 480.30 crore compared with Rs 767.33 crore during the same period in the previous year,” LICHFL said.

The company’s revenue from operations in the third quarter of 2022-23 was at Rs 5,871 crore, an increase of 16 per cent compared to Rs 5,054 crore in the same period a year ago. The expenses during the quarter under review stood at Rs 5,283 crore, up from Rs 4,108.54 crore in the corresponding period a year ago.

“After two years of pandemic-induced restrains, enthusiasm among home buyers remained upbeat. Rising interest rates and inflationary trends continued to put upward pressure on home prices in many regions. Asset quality remained stable with an improving trend and margins expanded q-o-q,” Y Viswanatha Gowd, MD and CEO of LIC Housing Finance, said.

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The company’s total disbursements were Rs 16,100 crore in the third quarter of 2022-23 as against Rs 17,770 crore for the corresponding period in 2021-22. Out of the total amount, disbursement in the individual home loan segment stood at Rs 13,580 crore as against Rs 15,341 crore in the comparable period of the last fiscal. Project loans were at Rs 427 crore compared with Rs 293 crore for the same quarter in the previous year.

LICHFL said the individual home loan portfolio stood at Rs 2,23,064 crore in the latest December quarter as against Rs 1,95,901 crore in the same period of the last fiscal. Project loan portfolio stood at Rs 10,857 crore as against Rs 14,091 crore as on December 31, 2021.

Further, the housing finance company said its total outstanding portfolio grew 10 percent to Rs 2,68,444 crore in the three months ended December 2022 from Rs 2,43,412 crore in the year-ago period. During the nine months ended December 2022, total disbursements stood at Rs 48,088 crore. It was up 13 percent compared to Rs 42,532 crore in the same period a year ago.

Also Read: BPCL Q3 Results: Net profit falls 36% YoY to Rs 1,747 crore

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow