Mumbai, Aug 4 (IANS): LIC Housing Finance Ltd's net profit rose sharply by 503 per cent year-on-year to Rs 925.48 crore on back of uptick in net interest income, as against Rs 153.44 crore in the same quarter last year.

The net interest income of the housing finance company rose by 26 per cent to Rs 1,610.19 crore, as compared to Rs 1,275.31 crore for the same period in the previous year. Net interest margin for the quarter stood at 2.54 per cent, as against 2.20 per cent the previous year.

Total revenue of the company grew 9 per cent to Rs 5,285.46 crore in the current quarter.

"With the easing of pandemic and better economic activity, there was an overall improvement in our segment. The hybrid work model has been widely accepted across the country, resulting in higher demand for better, larger residential units. This market trend assisted us with higher disbursements and improved financial performance during the current quarter," Managing Director & Chief Executive Officer Y. Viswanatha Gowd said.

Total disbursements were at Rs 15,201 crore, up 76 per cent, in the quarter under review as compared to Rs 8,652 crore in the corresponding period last year. Disbursements in the individual home loan segment were at Rs 13,131 crore as against Rs 7,650 crore in Q1FY22.

The Individual Home Loan portfolio stood at Rs 2.1 lakh crore, as against Rs 1.82 lakh crore as on June 30, 2021, up by 15 per cent.

The project loan portfolio stood at Rs 12,443 crore as on June 30, 2022, as against Rs 15,601 crore on the same date last year. The total outstanding loan portfolio grew 10 per cent to Rs 2.56 lakh crore from Rs 2.32 lakh crore in the earlier year.

Under IndAS 16, asset classification and provisioning changes for future credit loss are reported on an Expected Credit Loss (ECL) basis.