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Informist, Thursday, May 14, 2026

 

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--LIC Housing Fin: Positive FY27 will be better than FY26 
--LIC Housing Fin: See RoA of 1.75-1.80% in FY27 
--LIC Housing Fin: See good recoveries in Q1 
--LIC Housing Fin: Regulator not allowing merger of company with IDBI Bank 
--LIC Housing Fin: Targeting growth of 15% in retail loan book 
--LIC Housing Fin: West Asia war impact not yet played out on us 
--LIC Housing Fin: To set up separate affordable housing segment 
--LIC Housing Fin: Disbursements seen picking up, grew 21% in Apr 
--LIC Housing Fin: See NIM at 2.6-2.7% in Q1 
--LIC Housing Fin: Targeting 15% disbursement growth in Q1 
--LIC Housing Fin: Aim 10-12% loan growth for FY27 
--LIC Housing Fin: Except NIM at 2.5-2.7% FY27 
--CONTEXT: Comments by LIC Housing Fin's mgmt in post-earnings analyst call 
--LIC Housing Fin: Will continue to protect margins over growth 

 

By Pratiksha and Priyasmita Dutta

 

NEW DELHI – LIC Housing Finance Ltd. will continue to prioritise margins over growth, the company's senior management said Thursday, adding that it expected the net interest margin to be at 2.5-2.7% in 2026-27 (Apr-Mar).

 

"I think in Q1 (Apr-Jun), we would be able to maintain a margin of 2.6% to 2.7%. For the year, it is difficult to predict right now, but assuming that things remain normal, I would say for the year, NIM of 2.5% to 2.7% is what we are aiming to achieve," the company said in its post-earnings conference call with analysts. The non-banking finance company's net interest margin was 2.80% in the March quarter, down from 2.85% a year ago.

 

The company aims to achieve a 10-12% growth in its loan book in FY27. Of the total loan book, it is targeting the retail segment to grow 15% this financial year. 

 

The company's outstanding loan portfolio was at INR 3.21 trillion on Mar. 31, up 4% on year. The individual home loan portfolio was INR 2.71 trillion as on Mar. 31, up 4% on year.

 

Further, the company aims to grow its disbursements at 15% in Apr-Jun. The management said that disbursements have started picking up and grew almost 21% on year in April. In the March quarter, the housing finance company's total disbursements were at INR 210.19 billion, up 10% on year. Of this, disbursements in the individual home loan segment were at INR 166.72 billion, up 8% on year and non-housing individual loan segment were also up 25% at INR 33.48 billion.

 

The Mumbai-based company's management is planning to take multiple steps to ensure double-digit business growth in FY27. The company is looking to increase its presence in the co-lending space, more so in the retail segment and partially and cautiously in the project finance segment. It is also looking to move beyond its traditional corporate agents and tap multiple business aggregators available in the market to source business.

 

"We are consciously going to engage with them (business aggregators) and try to engage with them to source business for us. So that would probably give us some volume of business. INR 40 billion-INR 50 billion is what I'm looking for in the first year," the company's senior management said. 

 

Additionally, the company is looking to set up a separate affordable housing vertical shortly. "It (affordable housing vertical) will be completely new. People will be onboarded from outside because I believe people in our company are not attuned for that," it said.

 

The management said that the impact of the war in West Asia has not played out yet for the company. However, if the war goes on for some more time and inflation shoots up, there will be an impact, it said. In the March quarter, the mortgage lender reported a net profit of INR 14.97 billion, up 9.5% on year and over 8% on quarter. The company is positive that FY27 will be better than FY26 and sees a return on assets of 1.75-1.80% in this financial year. It also expects good recoveries in the June quarter.

 

Further, when asked if there is any discussion at the board level about the company's merger with IDBI Bank, the management said that the regulator is not permitting the same. Currently, the government holds a 45.48% stake in IDBI Bank, and LIC, the promoter, holds 49.24%. In the past, media reports have said that LIC was looking to merge its housing finance arm LIC Housing Finance with IDBI Bank. However, LIC has denied such reports. At 1415 IST, shares of the company traded 2.8% lower at INR 569.30 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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