LIC Housing Finance Sees 4.6% Increase in Net Profit

MUMBAI: LIC Housing Finance, the country's leading home loan provider, announced a 4.6% year-on-year increase in net profit, reaching Rs 1,359.9 crore for the quarter ended June 2025. This growth comes despite a slowdown in disbursement growth to just 2%.

Financial Performance Overview

The company's total income rose by 6.6%, with net interest income increasing by 3.9%. However, finance costs also saw a rise of 6.3%, totaling Rs 5,047.3 crore. Higher provisions and operating expenses further impacted profitability.

Disbursement Trends

Total disbursements in Q1 FY26 were Rs 13,116 crore, a slight increase from Rs 12,915 crore in Q1 FY25. Individual home loan disbursements grew by 3%, while project loans significantly decreased.

Management Insights

"We anticipated a demand surge post the RBI's repo rate cut, but it didn't materialize. Customers might be waiting for rates to bottom out," said Tribhuwan Adhikari, MD & CEO of LIC Housing Finance.

Asset Quality Improvement

Asset quality showed improvement, with gross and net NPAs declining. The provision coverage ratio increased, signaling a stronger balance sheet.