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LIC Housing Finance posted a 4.5-5% rise in net profit to INR 1,364 crore for Q1 FY26, backed by strong individual home loan demand. Total income rose 7% to INR 7,250 crore, while net interest income gained 4%. Home loan disbursements grew 3% to INR 11,247 crore, but project loans fell sharply. The loan book expanded by 7% to INR 3.09 lakh crore. Asset quality improved, with gross NPAs down to 2.62%. The firm also reduced lending rates, waived processing fees, and launched a new website to boost digital engagement. Marking 36 years of operations, LIC HFL now eyes higher-yield credit segments for future growth.
LIC Housing Finance has delivered a solid start to the financial year, achieving a 4½–5 per cent rise in net consolidated profit in the quarter ended June. Its bottom line reached INR 1,364 crore, up from around INR 1,300 crore in the same period last year. Advertisement
Total income climbed nearly 7 per cent to around INR 7,250 crore, while net interest income recorded a gain of about 4 per cent. That was driven by sustained demand for individual home loans, as project loan disbursements remained constrained, falling sharply compared to last year.
Total lending stood at INR13,116 crore, with individual home loans accounting for INR 11,247 crore (a rise of around 3 per cent), while project disbursements dropped to INR 156 crore from over INR 500 crore . The overall loan book grew by approximately 7 per cent to INR 3,09,587 crore .
Asset quality strengthened markedly: gross non-performing assets dipped to about 2.62 per cent, and net NPAs fell to roughly 1.30 per cent. Provisions for expected credit loss declined as well, signaling improved collections and healthier portfolio performance .
Management commented that lending rates were reduced in response to the RBI's rate cuts and processing fees were waived to stimulate housing credit access . Meanwhile, a revamped website was rolled out to enhance customer experience, supporting digital servicing efforts.
This quarter also saw the company celebrate a milestone 36 years since inception reinforcing its long-standing role in India's affordable housing finance landscape .
In a planned strategic shift, leadership indicated a move beyond individual home loans toward faster growth in higher-yielding credit segments, aiming to safeguard margin levels in a softening interest rate cycle.
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