LIC Housing Finance Limited's stock got a boost on Thursday after the company's board approved a massive ₹1.22 lakh crores of borrowing plan for the financial year 2025-26. The stock climbed 2.24% in early trade, hitting ₹532.25 per share on the National Stock Exchange (NSE).
Board greenlights borrowing plan
In an official filing, LIC Housing Finance confirmed its board had given the nod to a borrowing budget of ₹1,22,500 crores for FY26. The funds will be raised through various financial instruments, including loans, non-convertible debentures, zero-coupon bonds, subordinate debt, upper tier II bonds, commercial papers, external commercial borrowings, foreign currency bonds, securitisation, and more. Investors looking to buy shares online may find this development noteworthy.
The company will also secure refinancing from the National Housing Bank (NHB) and accept deposits from the public, corporates, and trusts. Additionally, the board recommended appointing M/s Shah Gupta & Company and M/s Batliboi & Purohit as Joint Statutory Auditors. Their term will last until the 39th Annual General Meeting (AGM) in 2028.
LIC Housing Finance's performance in numbers
LIC Housing Finance reported a strong 23.1% increase in profit after tax (PAT), reaching ₹1,432 crores in Q3 FY25, compared to ₹1,163 crores in the same period last year. However, net interest income took a slight dip, falling 4.8% to ₹1,997.1 crores from ₹2,097 crores in Q3 FY24.
The company's net interest margin (NIM) was almost steady at 2.7% compared to 2.71% in the previous year's quarter. Loan disbursements, meanwhile, saw a modest 2% increase, touching ₹15,475 crores in the December quarter, despite stiff competition from banks in the premium housing segment.
In a positive move, the company also offloaded a stressed loan asset worth ₹250 crores, which helped improve its overall asset quality.
What this means for investors
With this borrowing budget in place, investors are showing renewed confidence in LIC Housing Finance. As the housing finance sector continues to expand, many are considering this as an opportunity to buy shares online and tap into the company's growth potential.
On March 6, 2025, at 1:50 PM, the stock was trading at ₹529.75 per share. For those looking to invest, now might be a good time to buy shares online and be part of LIC Housing Finance's journey as it strengthens its market position. The coming months will be crucial in seeing how the company utilises these funds to drive further growth.
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