CARE

CRISIL

LIC Housing Finance Ltd. (LIC HFL) expects 15 per cent y-o-y loan growth in FY25, with an increased focus on growing loans in the affordable housing segment.Chief Executive Officer, attributed the modest 5 per cent y-o-y growth in outstanding loan portfolios in the third quarter to the company being in a consolidation mode, including major organization revamps and technology upgrades.

LIC HFL eyes 15% loan growth in FY25

India's LIC Housing Finance has accepted bids worth 10 billion rupees ($118.44 million) for the reissue of 7.57% October 2029 bonds .The housing finance company will offer a yield of 7.65% on the issue and invited bids from bankers and investors earlier in the day, they said. The company did not immediately reply to a Reuters email seeking comment.Issuer Tenure Coupon (in %) Issue size (in Bidding Rating bln rupees)* date LIC Housing 4 years and 7.65 (yield) 10 Nov. 22 AAA (Crisil, Oct 2029 reissue 11 months Icra) ICICI 3 years and To be decided 3.50+0.50 Nov. 25 AAA (Crisil) Home Finance 3 months ICICI Home Finance 10 years To be decided 1+1.50 Nov. 25 AAA (Crisil) 3 years and To be decided 5 Nov. 25 AAA (Crisil, Mindspace Business 2 months Icra) Parks REIT 10 years 7.22 10 Nov. 25 AAA (Crisil, Ultratech Cement India Ratings) .

LIC Housing Finance accepts bids for bond reissue, bankers say

LIC Housing Ltd posted a 4.4% year-on-year increase in net profit for the June quarter, coming in at ₹1,364 crore compared with ₹1,306 crore a year ago. The company’s revenue from operations rose 7% to ₹7,233 crore, while net interest income (NII) also edged up 4% YoY to ₹2,076 crore. Total disbursements during the quarter stood at ₹13,116 crore, up from ₹12,915 crore in Q1 FY25. Of this, individual home loan disbursements accounted for ₹11,247 crore, up 3% YoY. However, project loan disbursements declined sharply to ₹156 crore from ₹521 crore in the same quarter last year. LIC Housing Finance’s total outstanding loan portfolio grew 7% to ₹3,09,587 crore as of June 30, 2025, with individual home loans at ₹2,62,411 crore and project loans at ₹8,950 crore. The company noted that affordable housing continues to be a key growth segment, supported by government schemes like PMAY and increasing urbanisation.

LIC HFL Q1 profit rises 5% YoY; disbursements steady, asset quality improves

In FY25, LICHFL’s disbursements grew 9% to ₹64,022 crore. Despite NIM moderating to 2.70% (2.61% in H1FY26) due to lower yields, ROTA rose to 1.80%. This profitability was driven by a significant drop in credit costs (0.09%), which offset slightly higher operating expenses (0.43%) from wage and marketing costs.


GS3 assets stood at 2.62% (June 2025). While the core housing book is sound (1.22% GS3), non-housing segments remain stressed, specifically corporate (24.83%) and individual (4.24%). Increased recovery efforts yielded ₹230 crore from written-off accounts in FY25.



The issuer has made timely interest payments.

T. Adhikari. Managing Director and CEO

LICHFL, India’s largest housing finance player, manages a ₹3,09,587 crore portfolio (as of June 2025). Closely integrated with LIC, it leverages the parent's brand, capital, and agent network—which sources 55% of its business. The portfolio is highly stable, with individual home loans comprising 85% of the book, followed by non-housing (11%) and corporate (4%) segments.


LICHFL maintains high financial flexibility with a 7.42% average borrowing cost. As of September 2025, its diversified funding mix is led by NCDs (53%) and bank loans (35%), with the latter increasing to offset rising deposit costs. NHB, deposits, and other sources each account for 4%.


LICHFL’s capitalization is robust, with CAR rising to 23.20% and Tier-I to 21.70% (March 2025). Gearing improved to 7.37x by September 2025. Supported by a 15.45% average RONW and strong parentage from LIC, the company is well-positioned for future growth through reliable capital support and resource-raising ability.

Rating agency	Rating	Needle position
CARE	AAA Stable	near High Safety
CRISIL	AAA Stable	near High Safety

Security Name: 7.13% LIC Housing Finance Limited 28 Nov 2031

ISIN: INE115A07PP1

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