The company has witnessed marginal weakening of the asset quality with Net NPA ratio rising 09 bps qoq to 0.49% at end June 2014, while Net NPA ratio remained lower compared to 0.51% at end June 2013. The net interest margin (NIM) of the company declined 11 bps yoy and 21 bps qoq to 2.19% in the quarter ended June 2014.

Interest earned on a standalone basis increased 17% to Rs 2482.59 crore for quarter ended June 2014, while the interest expenses moved up 18% to Rs 1976.36 crore. The Net interest income rose 11% to Rs 506 crore in Q1FY2015, while the other income increased 28% to Rs 61 crore. The total income increased 13% to Rs 567.22 crore for quarter ended June 2014.

The operating expenses moved up 14% to Rs 67.45 crore, pushing up the operating profit by 13% to Rs 499.77 crore in Q1FY2015. The provisions for bad debt and write-off dipped 46% to Rs 9.16 crore, while the depreciation increased 25% to Rs 2.45 crore in Q1FY2015. PBT moved up 15% to Rs 488.16 crore for quarter ended June 2014. Tax provisions jumped 46% to Rs 165.85 crore, allowing the net profit to increase 4% to Rs 322.31 crore in Q1FY2015.

Steady loan growth

The outstanding mortgage portfolio increased 17% to Rs 93609 crore at end June 2014 from Rs 80137 crore at end June 2013. Individual Loan Portfolio stood increased 17% to Rs 91059 crore, while developers loan book increased 6% to Rs 2551 crore at end June 2014.

Asset quality slightly deteriorates

The Gross NPAs of the company stood at 0.8% at end June 2014 up from 0.67% at March 2014, while remained flat against 0.8% at end June 2013. Net NPAs also inched up to Rs 0.49% at end June 2014 from 0.39% at end March 2015, while remained lower compared to 0.51% at end June 2013. Gross NPAs in the individual loan segment was 0.4% at end June 2014 as against 0.52% at end June 2013.

Total provision including general provision on standard loans stood at Rs 719 crore at end June 2014 against Gross NPAs of Rs 753 crore on the same date.

Book Value

Book value of the company stood at Rs 155.7 per share at end June 2014, up from Rs 134.6 per share at end June 2013. Adjusted book value (net of NNPA) stood at Rs 146.56 per share at end June 2014 up from Rs 126.48 per share at end June 2013.

Annual Financial Performance:

For the year ended March 2014, LIC Housing Finance reported 22% increase in interest earned on a standalone basis at Rs 9073.34 crore, while the interest expenses increased 21% to Rs 7174.44 crore. Net Interest Income of the company moved up 24% to Rs 1898.9 crore. Other income of the company advanced 31% to Rs 261.33 crore, pushing up net total income 25% to Rs 2160.23 crore for FY2014.

The net interest margin exhibited improvement to 2.25% in FY2014 as against 2.18% for FY2013.

The operating expenses rose at moderate pace of 11% to Rs 305.63 crore, boosting up operating profit by 27% to Rs 1854.6 crore in FY2014. Provision for Bad debts were lower at Rs 21.47 crore in FY2014, compared to Rs 78.87 crore in FY2013. Depreciation rose 1% to Rs 7.63 crore. The PBT galloped 33% to Rs 1825.5 crore for the year ended March 2014. Tax provisions jumped 45% to Rs 508.32 crore. The net profit moved up 29% to Rs 1317.19 crore, on a yoy basis, in FY2014.