Highlights

Mumbai May 31, 2003: LIC Housing Finance announced its audited results for the year ended March 2003, following its approval by the Board of Directors in a meeting held in Mumbai on May 31, 2003.

Performance Details:

The company has recorded a spectacular growth in business during the financial year ended 31-3-03. Under Individual Loans, the Company sanctioned 84,126 loans for total amount of Rs. 3265.78 crores and disbursed 76,663 loans for a total amount of Rs. 2941.24 crores under Individual Loans.

The total sanctions inclusive of Individual and Project loans amounted to Rs. 3593.45 crores and disbursements to Rs. 3190.83 crores, showing a robust growth of 62.56% in disbursements.

The Outstanding Mortgage Portfolio as on March 31, 2003 was Rs. 7771.92 crores as against Rs.6169.85 crores in the last year, registering a growth of 25.97%.

The Company's total Income for the year ended March 2003 was Rs.1013.64 crores as against Rs.881.64 crores in the last year. This shows a growth of 15%.

For the year ended March 2003, the Company has shown 25.88% growth in the profit before tax, which increased to Rs.230.63 crores from Rs.183.21 crores in last year. After providing Rs.58 crores for tax, the Net Profit is Rs.180.11 crores as against Rs.147.66 crores in the previous year, thus representing a growth of 22%.

The board of directors has proposed a dividend of 55%.

Business Initiatives:

• Restructuring loans from Life Insurance Corporation :- The restructuring exercise on the loans taken from LIC of India has resulted in a reduction of 265 basis points in the cost of funds borrowed from LIC of India. The full impact of this cost reduction will be felt in FY04.
• External Commercial Borrowings :- The ECB route of raising funds has helped the Company borrow USD 50mn at rates significantly lower than the domestic debt market.
• Appointment of DSAs :- The Company had appointed around 350 DSAs who had contributed more than 11% of the full years’ business in a short period of time.

Future Outlook of the Company:

S.C.Jain, Director & Chief Executive said “The Company has been able to achieve significant reduction in cost of funds in the year FY03. Cost of funds will be further reduced in FY04. We are confident of achieving a growth of 50% in disbursals and substantial reduction in the level of Non-Performing Assets. These efforts will help achieve a healthy bottomline growth for the Company in FY04. The Company is looking at further enhancing its distribution capabilities and increasing its reach through a combination of diversified marketing channels, larger geographical coverage, better product offering and a robust technology backbone. We are also working on a brand-building exercise which would improve the visibility of the Company”

About the Company:

LIC Housing Finance Ltd is one of the largest housing finance companies in India having the widest marketing network of 105 offices across the country. It was promoted by Life Insurance Corporation in 1989 and a public issue was made in 1994. The company enjoys ‘AAA’ rating from CRISIL and CARE indicating highest safety with regard to the ability to service interest and repay capital.