LIC Housing Finance Q2 profit up 2% to ₹1,354 crore; NPAs decline to 2.51%

LIC Housing Finance on Wednesday reported a marginal 2 per cent improvement in September quarter net profit to ₹1,354 crore on a standalone basis.

The company promoted by life insurance behemoth LIC had posted a net profit of ₹1,329 crore in the year-ago period.

Total income of the mortgage entity rose to ₹7,170 crore during the quarter from ₹6,932 crore in the year-ago period, LIC Housing Finance said in a regulatory filing.

During the quarter, the interest income improved to ₹7,034 crore as compared to ₹6,853 crore in the same quarter a year ago.

Total expenses during the quarter increased to ₹5,465 crore from ₹5,267 crore in the same period in the previous fiscal year.

With regard to asset quality, the company was able to reduce gross non-performing assets (NPAs) to 2.51 per cent of the gross loans by the end of September 2025 from 3.05 per cent a year ago.

Similarly, net NPAs, or bad loans, too, declined 1.19 per cent from 1.57 per cent at the end of the second quarter of the previous fiscal year.

The company's main business is to provide loans for purchase or construction of residential houses.

Liquidity coverage ratio of the company came down to 185.86 per cent from 197.18 per cent at the end of September 2024.

On a consolidated basis, the company reported a 1.5 per cent rise in net profit to ₹1,349 crore as against ₹1,328 crore in Q2FY25.