LIC Housing Finance Q1 Results: The leading NBFC's net interest income dropped 10 per cent to ₹1,989 crore, compared to ₹2,209.4 crore in the year-ago period.
Nikita Prasad
Published2 Aug 2024, 07:13 PM IST
LIC Housing Finance Q1 Results: Net profit dropped nearly two per cent in June quarter
LIC Housing Finance Q1 Results: LIC Housing Finance announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Friday, August 2, reporting a drop of around two per cent in standalone net profit to ₹1,300.2 crore, compared to ₹1,323.7 crore in the corresponding period last year.
The leading non-banking financial company (NBFC)'s net interest income (NII)—the difference between interest earned on loans and paid on deposit—dropped 10 per cent to ₹1,989 crore, compared to ₹2,209.4 crore in the year-ago period.
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LIC Housing Finance Q1 Results: Key Metrics
The NBFC's net profit in the June quarter declined as higher borrowing costs offset gains from steady home loan demand. The net interest margin, a key gauge for profitability, shrunk to 2.76 per cent from 3.21 per cent a year earlier.
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With regard to asset quality, the LIC-promoted housing finance company witnessed improvement in gross non-performing assets (NPAs) ratio to 3.21 per cent from 3.31 per cent in the preceding January-March quarter of FY24. The net NPA ratio rose to 1.68 per cent from 1.63 per cent compared to the preceding quarter.
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The company's interest income rose to ₹6,739 crore from ₹6,703 crore in the first quarter of the previous fiscal. During the quarter, total expenses grew to ₹5,155 crore from ₹5,098 crore a year ago. Home finance companies have seen strong demand for home loans in hopes of a rate cut later in the year, but higher borrowing costs have impacted LIC Housing's bottom line.