The Hindu Business Line : LIC Housing net down 25 pc

LIC Housing Finance has reported a decline of 25 per cent in its net profit for the first quarter ended June 30, 2006. Net profit fell to Rs 37.46 crore from Rs 50.17 crore in the corresponding year-ago quarter, as higher borrowing costs put pressure on margins. Margins for the quarter were at 1.25 per cent, said Mr S.K. Mitter, Director and Chief Executive Officer, LIC Housing Finance.

Some indication may be had on margin pressure from the fact that the immediate previous quarter ended March 31, margins were at 1.45 per cent, he said. However, hikes in lending rates will start to show in the second and third quarters and improve margins substantially, he said. Interest income grew 19 per cent for the quarter, and amounted to Rs 322 crore (Rs 271 crore). Total income at Rs 340 crore, was also up by 19 per cent. The outstanding mortgage portfolio also grew 19 per cent to Rs 15,393 crore (Rs 12,889 crore).Individual loan disbursements rose 13 per cent to Rs 1,063 crore. The scrip gained marginally rising by 75 paise on the BSE to close at Rs 147.60.

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