LIC Housing Finance Q2 profit up 20%; shares dip

LIC Housing Finance Limited, a subsidiary of Life Insurance Corporation (LIC), declared its second quarter results on Thursday. The company posted a net profit of Rs 494.7 crore, up 20.16 percent year-over-year. 

During the corresponding quarter in the previous fiscal, the company's net profit stood at Rs 411.73 crore, the company said in its regulatory filing to the Bombay Stock Exchange. The company's net interest income rose 21 percent to Rs 866 crore from Rs 717 crore during the September quarter in the last fiscal. 

LIC Housing Finance's gross non-performing assets (NPAs) rose to Rs 750 crore at the end of the second quarter that ended on September 30, from Rs 683 crore in the corresponding quarter last fiscal. The company's revenues from operations were recorded at Rs 3,428 crore up from Rs 3,026 crore in the second quarter during the previous financial year. 

"Net NPAs stood at 0.28 percent as on September 30, 2016 as against 0.32 percent as on September 30, 2015," the company said in the filing.

Following the news, shares of LIC Housing Finance Limited closed at Rs. 609.50 on Thursday, down 1.12 percent from their previous close on the BSE.

LIC Housing Finance is one of the largest housing finance companies in India. The company was promoted by LIC and went public in 1994. The company provides long-term finance to individuals for purchase or construction of house or flat for residential purposes, repair and renovation of existing flat and houses.