LIC Housing Finance reports exceptional third-quarter financial performance, with net profit more than doubling from INR 480 crore to INR 1,163 crore year-on-year. Total revenues surged to INR 6,792 crore, mainly driven by increased interest income. Despite the strong showing, the company prudently provisioned INR 50.32 crore for investments in Alternate Investment Funds (AIFs) in compliance with RBI guidelines. Notably, the Capital Adequacy Ratio improved to 19.77%, indicating strengthened financial resilience. LIC Housing Finance's strategic decisions and adaptability underscore its resilience and promise a positive outlook. These results cement its stature as a key player in the mortgage lending sector, fostering investor trust and ensuring steady growth.
LIC Housing Finance, a pillar in the mortgage lending industry, has shown a great financial performance in the third quarter concluding December 2023, showcasing an outstanding profit leap of more than twofold. The company's net profit witnessed a rise, soaring from INR 480 crore in the corresponding quarter of the previous year to an impressive INR 1,163 crore.
This significant gain in profit was mirrored in the total revenues, which surged to an impressive INR 6,792 crore, a significant rise over the INR 5,876 crore recorded during the same time previous year. The main reason for this increased trend is the interest income, which came in at INR 6,744 crore as opposed to INR 5,839 crore in the third quarter of the previous year.
However, amidst this strong financial performance, LIC Housing Finance exhibited prudence in financial management by making a provision of INR 50.32 crore concerning investments in Alternate Investment Funds (AIFs). This move aligns with the guidelines outlined in the Reserve Bank of India circular dated December 19, 2023, showcasing a proactive approach to compliance and risk management.
A noteworthy highlight in this financial report is the commendable improvement in the company's Capital Adequacy Ratio, reaching an impressive 19.77 per cent at the end of December 2023. This marks a significant increase from the 17.74 per cent recorded in the same period of the previous year. The surge in this ratio is indicative of LIC Housing Finance's strengthened financial position, showcasing resilience in the face of economic uncertainties.
These positive financial results are a testament to LIC Housing Finance's strategic financial decisions, demonstrating adaptability to regulatory changes and resilience in navigating the evolving economic landscape. Investors and stakeholders alike can find reassurance in the company's robust performance, setting the stage for a promising outlook in the coming quarters.
The remarkable third-quarter results of LIC Housing Finance confirm its status as a major participant in the mortgage lending industry. The company is in a favourable position in the current economic climate thanks to its proactive actions and strong financial strategy, which also inspire trust in investors and set the stage for long-term, steady growth.
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