LIC Hsg Fin

The company reported a good set of numbers for Q4FY15 with net profit for the quarter rising 2.2% (YoY) at Rs.378 crore. The growth would have been much better but for the deduction of deferred tax liability of Rs.30 crore. Operationally, the company has done well. Net Interest income for the quarter rose by a healthy 22% at Rs.650 crore and NIMs rose, sequentially from 2.4% to 2.47%. Total disbursements rose 23% to Rs.9938 crore and individual loan disbursements were up 24% at Rs.9550 crore.

The good news is that asset quality improved. Gross NPAs fell from 0.57% to 0.46%. Its provisions/write-offs during the quarter rose 52% (QoQ) at Rs.10.32 crore. And looks like the institution is going all out creating its presence and brand equity – advertising costs are up by a 351% (QoQ). The company is expected to see some good tidings ahead what with interest rates coming down and hopefully, a revival in demand for housing.