Latest news with #TribhuwanAdhikari
Time of India
02-08-2025
- Business
- Time of India
LIC Housing Finance net rises 4.6%, disbursement growth slows to 2%
M UMBAI: LIC Housing Finance, the largest home loan company in the country, reported a 4.6% year-on-year increase in net profit to Rs 1,359.9 crore for the quarter ended June 2025. The modest growth followed a 6.6% rise in total income and a 3.9% increase in net interest income, as the drop in lending rates outpaced the decline in cost of funds, leading to narrower margins. Finance costs rose 6.3% to Rs 5,047.3 crore. There was also a drag on profitability from higher provisions and other operating expenses. Impairment on financial instruments jumped 34.8% to Rs 192.9 crore, reflecting a more cautious provisioning approach. Other expenses increased 29.6% to Rs 90 crore, while spending on employee benefits and depreciation grew 5.6% and 10.5%, respectively. Total disbursements stood at Rs 13,116 crore in Q1 FY26, compared with Rs 12,915 crore in the corresponding period of FY25, up 2%. Of this, disbursements in the individual home loan segment were Rs 11,247 crore, compared with Rs 10,932 crore in Q1 FY25, up 3%, whereas project loans were Rs 156 crore compared with Rs 521 crore in Q1 FY25. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Resmed AirSense 11 with flat 20% off ResMed Buy Now Undo 'We were expecting a surge in demand following the 100 basis points cut in repo rate by the Reserve Bank of India. Unfortunately, that did not happen. The only logical explanation I can give is that people are feeling that we are in the middle of the rate cycle and are waiting for the rates to bottom out,' said Tribhuwan Adhikari, managing director and chief executive officer of LIC Housing Finance. He added that the company aimed to increase the share of its individual home loans but would not go very aggressive on rates. On the income side, fees and commission revenue fell 21.8%, adding further pressure on the bottom line. Asset quality improved compared to the corresponding quarter last year. Gross and net NPAs declined, while the provision coverage ratio increased, indicating a strengthened balance sheet. The board's decision to shift the registered office for administrative reasons is expected to aid operational efficiency. The gross NPA ratio improved from 3.29% as of June 30, 2024, to 2.62% as of June 30, 2025. The net NPA ratio also improved, from 1.68% to 1.30% over the same period. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Time of India
02-08-2025
- Business
- Time of India
LIC Housing Finance aims to protect NIM first, says MD Adhikari
Kolkata: LIC Housing Finance is planning to shift its focus beyond individual home loans and move the high yielding loan businesses on a faster growth track as it looks to boost margin amid a softer interest rate cycle. Lending to individuals remained bread and butter all these years for the country's largest housing finance company with 85% share of the total loan assets portfolio. Explore courses from Top Institutes in Please select course: Select a Course Category Degree Leadership Digital Marketing Data Science MCA Data Science Project Management Data Analytics MBA others Management Operations Management Healthcare Product Management Artificial Intelligence Others Finance Cybersecurity CXO healthcare Public Policy Design Thinking PGDM Technology Skills you'll gain: Data-Driven Decision-Making Strategic Leadership and Transformation Global Business Acumen Comprehensive Business Expertise Duration: 2 Years University of Western Australia UWA Global MBA Starts on Jun 28, 2024 Get Details The company has decided to bring down the share to about 70% in two years' time, managing director Tribhuwan Adhikari said Saturday, responding to ET. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like How Much Does It Cost to Rent a Private Jet - The Prices May Surprise You! Private Jet I Search Ads Learn More Undo "We would like to boost margin and growth side by side. But if push comes to shove, our first aim will be to protect margin," the MD said. The lender's net interest margin for the first quarter of the fiscal stood at 2.68%, the lowest first quarter margin in two years. The NIM was 2.76% in Q1FY25 and 3.21% in Q1FY24. Live Events It earned a net profit of Rs 1360 crore for the quarter, as compared with Rs 1300 crore in the year ago period. "We are moving on to the other home loan segments," Adhikari said. Within this, the company is targeting loans against property or loans against deposits. The company however remained cautious on growing the affordable housing loan book which is targeted at the economically weaker segment.. "This is a slightly riskier segment. We are trying to build capacity," the MD said. The company's outstanding loan portfolio grew 7% year-on-year to Rs 3.10 lakh crore with individual home loan book being at Rs 2.62 lakh crore. "There is no surge in demand despite rate cuts. Many borrowers are perhaps waiting for the rate cut cycle to be completed to get the full benefit of it," Adhikari said. "For the salaried class, interest rates do play a big role,' he added. The salaried segment accounted for about 90% of the lender's customer base at the end of June.
Time of India
02-08-2025
- Business
- Time of India
LIC Housing Finance's net profit rises by 4.41% in Q1 FY26
NEW DELHI: LIC Housing Finance has reported a growth of 4.41 per cent in its net consolidated profit during the quarter ended June 30, 2025. Its profit after tax stood at ₹1,364 crore in Q1 FY26 as against ₹1,306.40 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing. The company's net consolidated total income stood at ₹7,250.16 crore in Q1 FY26, a growth of 6.67 per cent from ₹6,796.85 crore it recorded in the similar quarter last year. Tribhuwan Adhikari , managing director & chief executive officer of the company said, "The current year has started off strongly as we reduced the lending rates during this quarter in view of RBI rate cut. Additionally, we also introduced zero processing fee, in order to ease access to housing credit." As on June 30, 2025, its net worth stood at ₹35,934.06 crore, debt-equity ratio was 7.71, total debts to total assets was 0.88, operating margin was 23.49%, net profit margin was 18.80%, gross non-performing assets (NPAs) was 2.62%, net NPA was 1.30% and liquidity coverage was 177.43%. The board has constituted a review committee for identification of wilful defaulter. Total disbursements were at ₹13,116 crore in Q1 FY26, as against ₹12,915 crore for the corresponding period in FY25, up by 2%. Out of this, disbursements in the individual home loan segment were at ₹11,247 crore against ₹10,932 crore in Q1 FY25, up by 3%, whereas project loans were at ₹156 crore compared with ₹521 crore in Q1 FY25. The individual home loan portfolio stood at ₹2,62,411 crore as on June 30, 2025, as against ₹2,46,275 crore as on June 30, 2024, up by 7%. The project loan portfolio stood at ₹8,950 crore as on June 30, 2025, as against ₹8,099 crore as on June 30, 2024, up by 10%. The total outstanding portfolio grew by 7% to ₹3,09,587 crore from ₹2,88,665 crore in the earlier year. The provisions for expected credit loss (ECL) stood at ₹5,051.27 crore as on June 30, 2025, as against ₹5,670.07 crore as on June 30, 2024. The stage 3 exposure at default as of June 30, 2025, stood at 2.62% against 3.30% as of June 30, 2024.
Canada News.Net
23-06-2025
- Business
- Canada News.Net
LIC Housing Finance reduces interest rate in line with recent RBI repo rate cut
New Delhi [India], June 21 (ANI): LIC Housing Finance has reduced its rate of interest on new home loans by 50 basis points, in line with the similar degree of repo rate cut by yje Reserve Bank of India (RBI). With this revision, interest rates on new home loan sanctions will now start from 7.50 per cent, effective June 19, 2025, coinciding with the company's 36th Foundation Day, it said in a statement Saturday. This move by LIC Housing Finance is aimed at passing on the benefit to new home loan customers to encourage home ownership and improve affordability. The recent frontloaded repo rate cut by the RBI was understandably aimed at boosting economy, which has relatively moderated. The policy rate cut and the subsequent decline in interest rates by banks will create demand for fresh credit, giving fresh life to the economy. After a total of 100 basis point repo rate reduction since February 2025, the scope for more rate cuts is limited, RBI Governor Sanjay Malhotra had hinted after the latest monetary policy meeting. Tribhuwan Adhikari, MD and CEO, LIC Housing Finance said 'As we mark our 36th Foundation Day, we remain committed to making home ownership more accessible. The rate cut is a continuation of our effort to align with RBI's policy direction and pass on the benefits to our customers.' 'We are confident this move will provide an added boost to housing demand, especially in the affordable and mid-income segments, where aspirations of owning a home are closely tied to interest rate dynamics,' the MD and CEO added. LIC Housing Finance Ltd is a leading housing finance company having networks of offices across India and a representative office in Dubai. In addition, the Company also distributes its products through branches of its subsidiary LIC HFL Financial Services Ltd. LIC Housing Finance Ltd was promoted by Life Insurance Corporation in 1989, and a public issue was made in 1994. (ANI)
Times of Oman
22-06-2025
- Business
- Times of Oman
LIC Housing Finance reduces interest rate in line with recent RBI repo rate cut
New Delhi: LIC Housing Finance has reduced its rate of interest on new home loans by 50 basis points, in line with the similar degree of repo rate cut by yje Reserve Bank of India (RBI). With this revision, interest rates on new home loan sanctions will now start from 7.50 per cent, effective June 19, 2025, coinciding with the company's 36th Foundation Day, it said in a statement Saturday. This move by LIC Housing Finance is aimed at passing on the benefit to new home loan customers to encourage home ownership and improve affordability. The recent frontloaded repo rate cut by the RBI was understandably aimed at boosting economy, which has relatively moderated. The policy rate cut and the subsequent decline in interest rates by banks will create demand for fresh credit, giving fresh life to the economy. After a total of 100 basis point repo rate reduction since February 2025, the scope for more rate cuts is limited, RBI Governor Sanjay Malhotra had hinted after the latest monetary policy meeting. Tribhuwan Adhikari, MD and CEO, LIC Housing Finance said "As we mark our 36th Foundation Day, we remain committed to making home ownership more accessible. The rate cut is a continuation of our effort to align with RBI's policy direction and pass on the benefits to our customers." "We are confident this move will provide an added boost to housing demand, especially in the affordable and mid-income segments, where aspirations of owning a home are closely tied to interest rate dynamics," the MD and CEO added. LIC Housing Finance Ltd is a leading housing finance company having networks of offices across India and a representative office in Dubai. In addition, the Company also distributes its products through branches of its subsidiary LIC HFL Financial Services Ltd.
