(Eds: Adding more info with management commentary) Mumbai, Jan 30 (PTI) Mortgage lender LIC Housing Finance Wednesday reported a 26 percent growth in net profit at Rs 596.31 crore for the December quarter boosted by the impact of the lending rate increase effected towards the end of the previous quarters which drove the net interest income up 41 percent. Also Read - Joe Biden to Take Oath as 46th US President Today Amid Tight Security, Donald Trump to Skip Inauguration
“The quarter has been fairly good for us. During this year we affected a 60 bps rate hike. The impact of the hike was seen in various quarters but in the third quarter we saw highest benefit,” managing director and chief executive Vinay Sah told reporters. Also Read - 'Bengal Maango Toh Cheer Denge': TMC's Madan Mitra Issues Violent Threat To BJP
This has helped the company login a healthy 41 percent increase in the core net interest income jumped at Rs 1,042 crore from Rs 737 crore a year ago even though net disbursement rose only marginally. Also Read - Sports Minister Kiren Rijiju To Look After Ayush Ministry Till Shripad Naik Recovers
The average lending rate stood at 10.45 percent in the December quarter when the lender saw a reduction of 25 percent in loan takeovers.
Total disbursement marginally grew to Rs 12,778 crore as against Rs 12,293 crore for the same period in previous year. Disbursements of individual loans rose to Rs 9,170 crore from Rs 8,935 crore while those in developer loans grew 28 percent to Rs 1,238 crore, pushing up the total income 22 percent to Rs 4,439 crore.
Gross NPAs rose to 1.26 per cent from 0.87 percent, and net NPAs almost doubled to 0.85 percent from 0.49 percent.
Its cost of funds increased 15 bps to 8.38 percent in the reporting quarter.
The company’s scrip ended 4.24 percent down at Rs 434.15 on the BSE which closed flat.
This is published unedited from the PTI feed.