LIC Housing Finance Reports 1.6% Profit Rise in Q2 on Stable Loan Demand

LIC Housing Finance Limited announced its financial results for the second quarter ending September 30, revealing a modest 1.6% rise in net profit to ₹1,349 crore, compared to ₹1,328 crore in the same period last year. The company's Net Interest Income (NII), a key indicator of its core lending profitability, grew by 3.3% to ₹2,048 crore from ₹1,981 crore.

This performance is supported by consistent loan demand and a favorable interest income scenario. LIC Housing Finance, a major player in India's mortgage market, is experiencing continued benefits from a robust housing market, especially within the affordable and mid-income housing segments.

For context, the company had previously reported a 4.4% year-on-year increase in net profit for the June quarter, with net profit at ₹1,364 crore. While overall disbursements remained stable, individual home loan disbursements saw a 3% year-on-year increase in Q1, though project loan disbursements saw a significant decline.

Heading "Impact" The company's profit increase and stable loan demand indicate a healthy financial quarter. This suggests resilience in the housing finance sector, which could positively influence investor sentiment towards LIC Housing Finance and potentially other entities in the sector. The continued demand for affordable housing is a strong positive signal. Impact Rating: 6/10

Heading "Difficult Terms" * **Net Profit**: The profit remaining after all expenses, taxes, and interest have been deducted from the total revenue. * **Net Interest Income (NII)**: The difference between the interest income generated by a bank or financial institution and the interest paid out to its lenders. It's a primary measure of profitability for lenders. * **Loan Demand**: The desire or requirement from individuals or businesses to borrow money from financial institutions. * **Interest Income**: The income earned by a financial institution from lending money or investments.