Mumbai, June 22, 2004: LIC Housing Finance announced its audited results for the year ended March 2004, following its approval by the Board of Directors in a meeting held in Mumbai today

Performance Highlights - F.Y. 2003-04

	Year Ended March 2004	Year Ended March 2003
Loans Sanctioned	4693	3393
Loans Disbursed	4104	2991
Interest Income on Housing Loans	911	848
Total Income	985	1013
Net Profit	167.47	178.97
Outstanding Mortgage Portfolio	9892	7772
Dividend	50%	55%

(Figures in Rs. Crores)

Performance :

• Company recorded good growth during the FY 2003-04. Under Individual Loans, the Company sanctioned 92400 loans for total amount of Rs. 4069 crores and disbursed 92827 loans for a total amount of Rs. 3668 crores. Total sanctions for the year inclusive of Individual and Project loans was Rs. 4693 crores with a growth of 38% and total disbursements was Rs. 4104 crores, with a growth of 37%.
• Outstanding Mortgage Portfolio as on March 31, 2004 was Rs. 9892 crores as against Rs. 7772 crores as on 31st March 2003, showing a growth of 27.28%.
• The Company has improved its recovery position. Net NPA level had gone down from 3.22% to 2.37%
• The Company's total Interest Income for the year ended March 2004 was Rs. 911 crores as against Rs.848 crores in the last year, registering growth of 7.47%. Interest expenses of the Company for the period was reduced to Rs. 610 crores from Rs. 659 crores.
• Company's total income was Rs. 985 crores as against Rs. 1013 crores for the previous year.
• Net Profit of the Company for the Year was Rs. 167.47 crores as against Rs. 178.97 crores.
• The Board of Directors have recommended dividend of 50%.

Business Initiatives:

Enhancing Market Reach:

During the year under review the emphasis was on strengthening our distribution channels. The Company increased its strength of Sales Agents to 2209 from 1821 during the year .

Reduction in the cost of funds:

During the year various initiatives were taken by the Company to reduce its cost of borrowing. The Company raised $50 million as External Commercial Borrowing during the year at rates significantly lower than the domestic Debt Market rates.

Defaults:

The Company took several initiatives to control defaults, including appointment of recovery agents, as a result net NPA of the Company has come down by almost 1% during the year.

Corporate Clients :

The Company at the moment provides loans to employees of over 500 Corporate Houses through its Corporate Employees Housing Loan Scheme.

LIC Housing Finance Director and Chief Executive , Mr. AK Dasgupta, said, " The year under review saw a decline in yields across the industry, mirroring the interest rate scenario. However, the company has continued its strong growth in all the business segments. On one hand there was a healthy growth in loan disbursals, while on the other hand there was a decrease in NPAs. During the year, the Company has also been able to obtain significant reduction in its overall cost of funds. The Company has taken a policy decision to increase its provisioning cover on the NPAs in line with best practices. The decline in Net Profits could be attributable to the fact that there was a significant component of one time income in Fiscal 2003 which was not available in Fiscal 2004, as also on account of higher provisioning done this year.

In fiscal 2005, the Company is confident of maintaining a healthy business growth, and improved profitability on all counts."

About the Company:

LIC Housing Finance Ltd is one of the largest housing finance companies in India having one of the widest marketing network of 113 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.

Click here to see Detailed Financial Results

For further information please contact:

Mr. A.K. Dasgupta	Mr. Hemant Batra
LIC Housing Finance Ltd	Adfactors PR
Tel: 22049799 / 22040006	Tel: 56349848, 9820325109