Earnings Review
Jump in provisions hits LIC Housing profit, up only 4.6% YoY
This story was originally published at 21:47 IST on 1 August 2025
Register to read our real-time news.Informist, Friday, Aug. 1, 2025
Please click here to read all liners published on this story
--LIC Housing: Provision coverage ratio 50.92% as on Jun 30 vs 49.79% yr ago
--LIC Housing: Liquidity coverage ratio 177.43% on Jun 30 vs 197.72% yr ago
--LIC Housing net NPA stage 3 ratio 1.30% as on Jun 30 vs 1.68% year ago
--LIC Housing gross NPA stage 3 ratio 2.62% as on Jun 30 vs 3.29% year ago
--LIC Housing Apr-Jun revenue INR 72.33 bln vs INR 67.84 bln year ago
--LIC Housing Apr-Jun net profit INR 13.60 bln vs INR 13.00 bln year ago
--Analysts saw LIC Housing Finance Apr-Jun net profit at INR 13.90 bln
--LIC Housing Finance Apr-Jun net profit INR 13.60 bln
By Priyasmita Dutta
NEW DELHI – LIC Housing Finance Ltd.'s profit for the June quarter was just 4.6% higher on year as provisions during the quarter jumped 35%. The housing financier reported a net profit of INR 13.60 billion, missing the Street estimates by a hair. Analysts had expected the company to post a profit of INR 13.90 billion. Sequentially, Apr-Jun's net profit was down 0.6%.
LIC Housing's provisions rose to INR 1.93 billion in the June quarter, dragging the on-year rise in bottom line to a four-quarter low. Sequentially as well, provisions rose by a sharp 76%.
The jump in provisions is likely to keep the asset quality stable, which has been improving steadily. In the June quarter, LIC Housing Finance's net non-performing asset ratio improved to 1.30% from 1.68% a year ago, while gross NPA ratio improved to 2.62% from 3.29% in Apr-Jun last year. The company's provision coverage ratio was 50.92%, slightly higher than the 49.79% last year.
The company released its financial results post market hours. On Friday, shares of the company closed at INR 570 on the National Stock Exchange, down 2.7%. Its liquidity coverage ratio was 177.43% at the end of June, as compared to 197.72% at end of the year-ago quarter.
LIC Housing's total revenue from operations was INR 72.33 billion, up 6.6% on year, but down 0.7% on quarter. Interest income made up nearly 98% of the total revenue from operations, registering an on-year growth of 5.6% during Apr-Jun to INR 71.13 billion. Sequentially, the interest income was down 0.1%. The housing financier did not have any other sources of income other than revenue from operations during the quarter under review.
Buoyed by a rise in provisions, the company's expenses rose 7.4% on year and 0.4% sequentially to INR 55.34 billion during Apr-Jun. LIC Housing Finance did not release its investor presentation or press release at the time of reporting. End
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
