LIC Housing Finance hopes to achieve a profit of Rs 5,000 cr in FY24: CEO | Business News – Business Standard
LIC Housing Finance, the mortgage arm of insurance giant LIC, expects a net profit of Rs 5,000 crore for the current financial year, driven by robust loan demand and expansion in non-core businesses.
Its non-core businesses include Loan Against Property (LAP) and affordable housing finance, Tribhuwan Adhikari, managing director and CEO of LIC Housing Finance, said. PTI in an interaction.
During 2022-2023, the largest housing finance company posted a net profit of Rs 2,891 crore.
“The affordable housing segment remained strong in the second and third tier markets. We remained focused on this segment as it offers an opportunity to millions of aspiring Indians to own their homes on a modest budget,” he said.
In addition to business growth, he said, “our commitment has been to improve service standards through continued digital transformation of our processes.”
The fourth quarter is typically the most important economic period for the company. Going by current trends, we expect to end this fiscal year with healthy numbers, he said.
He said the company has achieved a net profit of Rs 3,675 crore in the three quarters and hopes to touch Rs 5,000 crore by the end of this financial year.
Net interest margin (NIM) for the quarter ended December 31, 2023 was 3 percent, compared to 2.41 percent as of December 31, 2022.
However, he presented a somewhat conservative expectation of 2.6-2.8 percent NIM during the March 2024 fiscal end due to high financing costs.
The cost of funds has increased due to high interest rates.
Asked about the capital requirements to finance business growth, Adhikari said there is no immediate need for funds as the capital adequacy ratio is close to 20 percent.
LIC Housing Finance’s CAR rose to 19.77 percent at the end of December 2023, compared to 17.74 percent at the end of the third quarter of the previous fiscal.
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First print: February 25, 2024 | 1:17 p.m IST