LIC Housing Finance reported net profit of ₹1,497 crore for the quarter ending March 2026, up 9.4% year-on-year from ₹1,368 crore. The growth was underpinned by a combination of higher lending income, lower loan-loss provisions, and a rebound in disbursements.
Net interest income climbed to ₹2,222 crore from ₹2,165 crore in the same quarter last year—a modest 2.6% increase reflecting steady core lending margins. More significantly, provisions for bad loans fell sharply to ₹74 crore from ₹104 crore, releasing capital and boosting bottom-line earnings.
Total loan disbursements during the quarter reached ₹21,019 crore, up 9.7% from ₹19,156 crore a year prior. This acceleration signals strong demand in the housing finance segment and reflects the company's ability to scale origination despite tighter credit conditions.
Asset quality metrics improved across both measures. The gross NPA ratio contracted to 2.15% from 2.47%, while the net NPA ratio tightened to 1.08% from 1.22%. These gains suggest either better underwriting discipline, improved borrower repayment capacity, or both.
The board recommended a dividend of ₹10 per equity share, subject to shareholder approval at the annual general meeting. This payout reflects management confidence in earnings sustainability and capital adequacy.
