×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

LIC Housing Q3 profit rises 38%, CEO sees FY11 margin steady

LIC Housing Q3 profit rises 38%, CEO sees FY11 margin steady
Comment E-mail Print Share
First Published: Wed, Jan 19 2011. 08 00 PM IST
Updated: Wed, Jan 19 2011. 08 00 PM IST
Mumbai: Housing lender LIC Housing Finance is confident of keeping margins around 3% in FY11 amid tight liquidity situation, a top official said on Wednesday.
“Our borrowing cost at present is 8.12%. We are getting competitive rates, much better than other companies. Banks have confidence in us,” said VK Sharma, director and chief executive of LIC Housing told Reuters over telephone.
Earlier in the day LIC Housing Finance reported a 38% jump in net profit for the Oct-Dec quarter. The housing financier’s net interest margin for the December quarter stood at 3.14%, up from 2.76%, a year ago.
A rise in borrowing costs will have some impact but the mortgage lender does not see margins falling below 3% in FY11, Sharma added.
The company said its retail loans jumped 90% to Rs5,302 crore while disbursals rose 41% to Rs4,215 crore in Oct-Dec.
The net interest income rose 55% to Rs352 crore from Rs227 crore, a year ago.
The company’s total loan portfolio for quarter ended December stood at Rs46,380 crore. About 10.5% of this was exposure to builders, Sharma said.
The firm expects to keep the exposure to builders at around 10-11%, Sharma said, adding gross non-performing assets on builder loan portfolio stood at 0.08%.
During the quarter the company’s loans worth Rs389 crore were under scrutiny of the Central Bureau of Investigation (CBI).
It’s former chief executive officer, R.R. Nair, was arrested by the CBI for clearing loans worth Rs470 crore for three realtors in a bribes-for-loan investigation. Sharma, who took charge from Nair in November, said the loans under scrutiny were being serviced, but he did not elaborate on the impact of the investigation.
Comment E-mail Print Share
First Published: Wed, Jan 19 2011. 08 00 PM IST