LIC Housing Finance records phenomenal growth in Q3 FY2024

LIC Housing Finance Ltd. (LIC HFCL), a leading name in the housing finance sector in India, has unveiled its un-audited financial results for the third quarter ended December 31, 2023. The announcement was made after the approval by the Board of Directors during a meeting in Mumbai on February 2, 2024. Demonstrating robust growth, the company’s results reflect a significant improvement across various financial metrics, positioning LIC HFCL as a key player in India’s housing finance landscape.

The quarter witnessed LIC Housing Finance Ltd. achieving a remarkable net interest income of Rs. 2097 crores, a 31% increase from the previous year, alongside a substantial net profit after tax of Rs. 1162.88 crores, marking a 142% rise. Additionally, the net interest margin improved to 3.00%, up from 2.41% in the same quarter the previous year. The company’s outstanding loan portfolio also saw a 5% growth, reaching Rs. 281206 crores.

Total disbursements for Q3 FY2024 stood at Rs. 15184 crores, with the individual home loan segment contributing Rs. 12868 crores. Despite a slight decrease in total disbursements compared to the corresponding period in FY2023, the company’s revenue from operations rose by 16% to Rs. 6792 crores. The individual home loan portfolio grew by 7%, reaching Rs. 238499 crores, while the project loan portfolio was reported at Rs. 8569 crores.

LIC Housing Finance Ltd. has strengthened its financial health with provisions for Expected Credit Loss (ECL) at Rs. 6890 crores, ensuring a 48% coverage. The stage 3 exposure at default improved to 4.26%, reflecting the company’s focused efforts on maintaining robust asset quality.

Tribhuwan Adhikari, Managing Director & Chief Executive Officer of LIC Housing Finance Limited, shared a positive outlook for the housing market, attributing the success to a pause in the rate-hike cycle, strong economic growth, and government initiatives in infrastructure. Emphasizing the importance of the affordable housing segment and digital transformation, Adhikari expressed confidence in closing the financial year with healthy numbers.

As India’s largest housing finance company, LIC Housing Finance Ltd. boasts an extensive network of offices and a representative office in Dubai. Promoted by the Life Insurance Corporation in 1989, the company has consistently received the highest safety ratings from CRISIL & CARE, underlining its commitment to service excellence and financial stability.