(Reuters) – India’s LIC Housing Finance on Thursday reported a 43% rise in first-quarter profit, helped by strong demand for housing loans.
The company posted a profit after tax of 13.24 billion rupees ($159.95 million) for the quarter ended June 30, from 9.25 billion rupees an year ago.
Housing demand in India has risen in the post-pandemic period, as a growing middle class looks to invest in real estate despite higher interest rates and home prices.
The Indian central bank has raised key interest rates by 250 basis points since May 2022, with two pauses, while June retail inflation rose to 4.81%, snapping four months of easing.
A Reuters poll in June said home prices in the country are set to hold above consumer inflation.
LIC Housing Finance’s total expenses rose 23%, with finance costs rising 23% to 44.94 billion rupees. Interest income rose 28% to 67.04 billion rupees.
Rival PNB Housing Finance last month posted a near-48% rise profit, driven by robust demand for housing loans and improved asset quality.
LIC Housing’s shares closed 4.83% lower ahead of results. For the June quarter, it grew 19% against a 33.5% climb in PNB Housing.
($1 = 82.7780 Indian rupees)
(Reporting by Aleef Jahan in Bengaluru; Editing by Varun H K)