Mumbai, October 26, 2004: LIC Housing Finance announced its unaudited results for the second quarter ended September 2004, following its approval by the Board of Directors in a meeting held in Mumbai on October 26, 2004.

Highlights

	Quarter ended September 2004		Six Months ended September 2004
Loans Sanctioned	1334.19	Up by 13.30%	2302.15	Up by 10.35%
Loans Disbursed	1080.08	Up by 14.60%	2012.13	Up by 7.90%
Total Income	256.92	Up by 3.30%	505.28	Up by 4.90%
Net Profit	45.68	Up by 27%	87.55	Up by 25.20%
Outstanding Mortgage Portfolio	10797.71	Up by 22.30%

(Rupees. in Crores)

Performance Details :

The company has recorded a healthy growth in business during the second quarter ended September 2004. Under Individual Loans, the Company sanctioned Rs. 991.59 crores and disbursed Rs. 930.69 crores. The total sanctions inclusive of Individual and Project loans amounted to Rs.1334.19 crores and disbursements to Rs.1080.08 crores.

Net profit for the Q2 was Rs.45.68 crores as compared to Rs.35.98 crores in the corresponding period last year, thus showing a growth of 27%. The Company's total Income for the second quarter ended September 2004 was Rs.256.92 crores as against Rs.248.75 crores during the same period last year.

For the half year ended September 2004 the Company sanctioned Rs. 2302.15 crores, and disbursed Rs.2012.13 crores.

For the half year ended September 2004, the Company's total Income was Rs.505.28 crores as against Rs.481.87 crores during the same period last year. Net profit during this period was Rs 87.55 crores as compared to Rs.69.93 crores in the corresponding period last year, a growth of 25.2 %.

The Outstanding Mortgage Portfolio as on September 30, 2004 was Rs.10797.71 crores as against Rs.8830.11 crores on September 30, 2003, thus registering a growth of 22.3%.

LIC Housing Finance Director and Chief Executive, Mr. A.K. Dasgupta, said, " The Company continued to display a healthy performance in all the areas of operation. During the current quarter, we have contained our cost of funds, thereby ensuring a steady growth in profitability.. The recently concluded GDR issue of the Company has strengthened the capital base, thereby enabling increased lending operations"

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 130 operating 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.

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For further information please contact:

Mr. A.K. Dasgupta	Mr. Hemant Batra
LIC Housing Finance Ltd	Adfactors PR
Tel: 22854248 / 22040006	Tel: 22813565, 9820325109