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Tag: Net Interest Income

  • LIC Housing Finance Logs 12 Per Cent Net Profit Jump At Rs 1,329 Crore In Q2 | Economy News

    Mumbai: LIC Housing Finance Ltd on Monday reported 12 per cent increase in net profit at Rs 1,329 crore in Q2 FY25, from Rs 1,188 crore in the same period last year. 

    The company clocked a 2.5 per cent growth in revenue at Rs 6,926 crore, from Rs 6,758 crore in the year-ago period, riding on stable growth in both home and project loan disbursements.

    The company expressed optimism for growth in the upcoming festive quarters, driven by a robust focus on affordable housing and rural infrastructure.

    Outstanding loan portfolio was up by 6 per cent to Rs 294,588 crore while individual home loan portfolio was up by 7 per cent to Rs 250,879 crore. In the July-September period, loan disbursements were Rs 16,476 crore, a 12 per cent increase from Rs 14,665 crore in the year-ago period. During the quarter, the company had a technical write-off of Rs 286 crore.

    According to LIC Housing Finance, the net interest income (NII) declined by 6 per cent to Rs 1,974 crore from Rs 2,107 crore in Q2 FY24, driven by a reduced net interest margin (NIM), which stood at 2.71 per cent compared to 3.04 per cent a year earlier and 2.76 per cent for Q1 FY25.

    The company’s provisions for expected credit loss stood at Rs 5,458 crore, covering 49 per cent of Stage 3 loans. The stage 3 exposure on default (as on September 30) stood at 3.06 per cent as against 4.33 per cent (as on September 30, 2023) and 3.30 per cent (as on June 30, 2024), said the company.

    “During the six months ended September 30, 2024, the total disbursements for the company stood at Rs 29,391 crore against Rs 25,521 crore for the same period of the previous year, a growth of 15 per cent. The shares of LIC Housing Finance closed at Rs 618.45 on Monday, up by 3.39 per cent.

  • PNB Records Its Highest Ever Quarterly Profit Of Rs 3,252 Cr | Markets News

    New Delhi: Punjab National Bank (PNB) on Saturday reported its highest-ever quarterly standalone profit at Rs 3,252 crore in April-June FY25 helped by a decline in bad loans and an improvement in interest income.

    The state-owned bank posted a net profit of Rs 1,255 crore in the June quarter of FY24. This is the highest ever quarterly profit recorded by the bank on account of improvement in various parameters, including net interest income, recovery and CASA, Managing Director Atul Kumar Goel said.

    Total income in the quarter rose to Rs 32,166 crore from Rs 28,579 crore in the same period a year ago. The lender’s interest income also increased to Rs 28,556 crore from Rs 25,145 crore in the same quarter a year ago, as per a regulatory filing.

    Net Interest Income (NII) increased to Rs 10,476 crore in Q1 FY25 from Rs 9,504 crore earlier, showing an improvement of 10.23 per cent. Gross Non-Performing Assets (NPAs) declined to 4.98 per cent of gross advances by June 2024 from 7.73 per cent in the same quarter a year ago.

    Similarly, net NPAs declined to 0.60 per cent from 1.98 per cent. As a result, provisions for bad loans came down drastically to Rs 792 crore in April-June FY25 as against Rs 4,374 crore in the year-ago period.

    Provision Coverage Ratio improved to 95.9 per cent as of June 2024 from 89.83 per cent a year ago.

    On a consolidated basis, the bank reported a net profit of Rs 3,976 crore in the quarter under review as against Rs 1,342 crore a year ago. The consolidated financial result of the bank comprises five subsidiaries and 15 associates.

    The capital adequacy ratio of the bank improved to 15.79 per cent at the end of June 2024 compared to 15.54 per cent in the year-ago period. With improvement in capital position, Goel said, the bank has decided to cut the proposed share sale size through Qualified Institutional Placement (QIP) to Rs 5,000 crore from an earlier estimate of Rs 7,500 crore.

    Asked when the capital will be raised, he said the bank is evaluating the opportune time for that. Besides, he said, the board has given approval to raise Rs 7,000 crore from Tier I bonds and Rs 3,000 crore from Tier II bonds to fund business growth.

    As far as recovery is concerned, he said, the bank is targeting Rs 18,000 crore collection from this including from NCLT realisation. “We are hoping recovery of Rs 3,000 crore from NCLT cases,” he said.

    During the quarter, he said, slippages were Rs 1,755 crore against a recovery of Rs 3,249 crore.

    Going forward, the bank is aiming net NPA of less than 0.5 per cent, a gross NPA of less than 4 per cent and a Return on Asset of 1 per cent by March. As far as business growth is concerned, he said, credit growth is estimated at 11-12 per cent while deposit 9-10 per cent and Net Interest Margin at 2.9-3 per cent.

    Low-cost fund Current Account and Savings Account (CASA) deposit would increase to 42 per cent from the current level of 40.08 per cent of total deposits, he added. On improving its digital competitiveness, he said, PNB has earmarked Rs 2,500 crore to be spent on IT.