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Informist, Friday, Jul. 31, 2026

 

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--LIC Housing: Business growth in line with guidance of 15% 
--CONTEXT: LIC Housing Fin's mgmt comments at post-earnings analyst concall 
--LIC Housing: Targeting 15% business growth in Jul-Sept 
--LIC Housing: Aims to maintain NIMs at 2.6% in FY27 
--LIC Housing: Co-lending book growth to aid margins going forward 
--LIC Housing: Q1 loan disbursements growth 15% YoY in line with view 
--LIC Housing:Would protect margin over growth but aims to balance both FY27 
--LIC Housing: In line to achieve 10-15 bps credit cost guidance in FY27 
--LIC Housing: See GNPA less than 2% in FY27 
--LIC Housing: Aims INR 40 bln developer loan disbursements in FY27 
--LIC Housing: Aim around 10% growth in AUM in FY27 
--LIC Housing: Optimistic about disbursement growth 
--LIC Housing: Margin growth challenging, will continue to compete with bks 
--LIC Housing: See Jul-Sept as "good" quarter for company 

 

By J. Navya Sruthi and Shruti Nair

 

MUMBAI – LIC Housing Finance Ltd. aims to maintain its net interest margin for 2026-27 (Apr-Mar) at 2.6%, the management told analysts in a post-earnings concall. It said it would protect net interest margins over business growth, but try to balance both in the current financial year. 

 

"Would like to protect margins as compared to growth," the management told analysts. "This year also, like last year, is going to be a war or tug of war between high growth and maintaining our margins," the management said. "This year, I would say we would try to balance growth along with margins."

 

The housing finance company's net interest margin for the June quarter was 2.58%, down from 2.68% in the year-ago quarter. The company's net profit rose over 9% on year to INR 14.88 billion in the June quarter. Its revenue from operations for the quarter was INR 70.62 billion, down 1.5% on year.

 

 

The management expects its loan disbursements in FY27 to grow at 15%. In the June quarter, disbursements rose 14.5% on year to INR 150.14 billion, in line with the management's view. The company is targeting loan disbursement growth of 15% in Jul-Sept.   

 

"The disbursement has picked up in Q1 (June quarter) and we are optimistic that the trend will continue in Q2 (September quarter)," the management said. "As far as the margins is concerned, it's going to be challenging considering the fact that our segment is basically what the banks peddle in."

 

However, the company's diversification strategy is likely to help it meet the net interest margin guidance of 2.6% for FY27. Growth in the housing finance company's co-lending book will also help net interest margins going forward, the management said.  

 

The company's individual housing loan disbursements rose 8% on year to INR 121.19 billion, while non-housing loan disbursements rose 20% on year to INR 19.75 billion in the June quarter.  

 

Under its developer finance segment, loan disbursements were at INR 8.50 billion or INR 8.72 billion in the June quarter, the management said. "Growth is very high at 450%, largely to do with the low base of last year," the management said. "We are interested in the development finance book, but again, cautious, steady."

 

The company has a credit risk policy for developer finance that is almost ready and will be rolled out in coming days, the management said. "We have set a modest target of about 4,000 crores (INR 40 billion) for the current financial year. The expectations are, of course, that we would probably be doing 7,000 to 8,000 crores (INR 70 billion to INR 80 billion) in developer finance," the management said. 

 

The company's credit cost was a negative 5 basis points in the June quarter, but the management expects to achieve 10-15 bps credit cost in FY27. The gross non-performing assets ratio for the June quarter was 2.14% and the management expects it to be lower than 2% in FY27. It also expects 10% growth in assets under management in FY27.  

 

At 1359 IST, shares of LIC Housing Finance were at INR 528.25 on the National Stock Exchange, down 2.3% over Thursday.  End

 

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

 

Edited by Avishek Dutta

 

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