LIC Housing Finance Q2 Results: Net Profit Increases by 12%, Driven by Stable Loan Growth

LIC Housing Finance Q2 Results: Net Profit Increases by 12%, Driven by Stable Loan Growth

LIC Housing Finance, one of India’s leading housing finance companies, has announced its financial results for the second quarter of fiscal year 2025, showing a strong performance marked by growth in profits and a steady increase in loan disbursements.

Key Financial Highlights

1. Net Profit Growth: The company reported a 12% year-on-year increase in net profit, reaching ₹1,328 crore in Q2 FY25 compared to ₹1,187 crore in the same period last year. The rise in profitability was primarily driven by stable loan growth and better management of interest costs.

2. Revenue Increase: Total revenue for the quarter stood at ₹6,680 crore, reflecting a 13% growth from ₹5,922 crore in the previous year. This increase was supported by higher interest income due to an expanding loan portfolio.

3. Loan Portfolio Performance: LIC Housing Finance's loan book grew by 8% year-on-year, with a total outstanding loan portfolio of approximately ₹2.75 lakh crore. The growth in loans was fueled by higher disbursements in the individual home loan segment, which remains the company’s primary focus.

4. Net Interest Margin (NIM): The net interest margin, a key profitability indicator, improved to 2.65% from 2.43% in the same quarter last year. This indicates better earnings from the interest spread between loans and borrowings.

5. Asset Quality: The company’s asset quality showed signs of stability, with the gross non-performing asset (GNPA) ratio at 2.49%, a slight improvement from 2.52% in the previous quarter. This reflects the company’s ongoing efforts to maintain credit quality and manage risks effectively.

Strategic Initiatives and Market Outlook

LIC Housing Finance has been focusing on expanding its digital reach to enhance customer service and speed up the loan approval process. With a strong emphasis on affordable housing, the company aims to capitalize on government initiatives and policies that promote home ownership in India.

The management is optimistic about sustaining the growth trajectory, supported by the growing demand for housing loans and favorable interest rate conditions. The focus will continue to be on the retail home loan segment, while also exploring opportunities to expand in other areas such as project finance and non-housing loans.

Conclusion

LIC Housing Finance's Q2 FY25 results reflect a solid performance, with steady growth in profit, revenue, and the loan portfolio. The improvement in net interest margin and stable asset quality further underscore the company’s financial strength and strategic direction. As the demand for housing in India continues to grow, LIC Housing Finance is well-positioned to leverage its extensive network and market expertise to drive future growth.