Updated February 25th, 2024 at 13:33 IST

LIC Housing Finance expects to record Rs 5,000 crore in FY24 profits

During the previous fiscal year 2022-23, the company reported a net profit of Rs 2,891 crore.

Reported by: Business Desk
Representative | Image:Unsplash
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LIC Housing Finance FY24 profits: LIC Housing Finance, the mortgage arm of insurance giant LIC, anticipates a net profit of Rs 5,000 crore in the current fiscal year, buoyed by strong loan demand and expansion in non-core business segments. According to Tribhuwan Adhikari, Managing Director and CEO of LIC Housing Finance, the company's non-core business, which includes Loan Against Property (LAP) and affordable housing finance, has contributed significantly to its growth trajectory.

During the previous fiscal year 2022-23, the company reported a net profit of Rs 2,891 crore. Adhikari highlighted the strength of the affordable housing segment in tier-2 and tier-3 markets, underlining its role in enabling millions of aspiring Indians to realise their homeownership dreams within a moderate budget.

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In addition to business expansion, LIC Housing Finance has been focused on improving service standards through ongoing digital transformation initiatives. Adhikari underlined the importance of the fourth quarter as a crucial period for the company's business performance, expressing optimism about ending the financial year on a positive note.

Despite a robust performance, Adhikari provided a slightly conservative outlook for the Net Interest Margin (NIM), projecting it to be in the range of 2.6-2.8 per cent for the fiscal year ending March 2024, attributing it to the elevated cost of funds due to high-interest rates.

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Addressing concerns about capital requirements for business growth, Adhikari assured that there is currently no immediate need for additional funds, as the Capital Adequacy Ratio stands close to 20 per cent.

The Capital Adequacy Ratio of LIC Housing Finance increased to 19.77 per cent as of December 2023, compared to 17.74 per cent in the previous financial year's third quarter, reflecting the company's strong financial position and capital adequacy.

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(With PTI inputs)

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Published February 25th, 2024 at 13:33 IST