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LIC Housing Finance to disburse 8-10% of total loan portfolio to developers

03 Sep 2012 Evaluate

LIC Housing Finance, a subsidiary of Life Insurance Corporation of India has decided to disburse around 8-10% of its total loan portfolio to developers by the end of this fiscal. Currently around six per cent of its total loan portfolio constitutes developer loan. The company is taking this initiative, as its earlier low developer loan portfolio had put the margins under pressure and with higher disbursals, it aims to increase the margin level.

The company has registered a fall of 11.21% in its net profit at Rs 227.75 crore for first quarter ended June 30, 2012 as compared to Rs 256.50 crore for the same quarter in the previous year. However, the total income from operation of the company has increased by 25.83% at Rs 1746.45 crore for Q1FY13 as compared Rs 1387.93 crore for the corresponding quarter previous year.

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