Residential buildings stand in Ahmedabad, Gujarat (Photographer: Dhiraj Singh/Bloomberg)

LIC Housing Finance Expects Smaller Cities To Propel Growth Next Fiscal

LIC Housing Finance Ltd. said real estate demand in smaller towns and cities is expected to boost growth of its core income in the next financial year.

“The real estate sector was growing at a fantastic rate till the first two quarters. Only in this quarter disbursements have dropped,” said Managing Director and Chief Executive Officer Vinay Sah told BloombergQuint in an interview. “It’s only in metros we see a dip. The demand is very good in tier II and III cities, which will contribute more to the (net interest income) growth in 2020.”

Key Highlights: (YoY)

  • Net interest income rose 42 percent to Rs 1,084.3 crore.
  • Net profit rose 25.5 percent to Rs 596.3 crore.
  • Gross non-performing asset rose to 1.26 percent from 1.2 percent in the preceding quarter.
  • Net NPA rose to 0.85 percent from 0.81 percent in the September quarter.

The stock gained as much as 3.8 percent in today’s session. The stock, however, fell 18 percent in the last 12 months.

Watch the full interview here: