Graphic: Subrata Jana/Mint
Graphic: Subrata Jana/Mint

As far as the main metrics of profitability go, LIC Housing Finance Ltd gets it right in the quarter ended 31 December.

The home loan company’s profit grew 19% to Rs499.26 crore for the quarter from a year ago; its margins saw the highest sequential increase; and its loan book held on to the 15% growth of the previous quarters.

Even asset quality remained unscathed in the aftermath of demonetization, which was said to have resulted in some pain to many home financiers. LIC Housing Finance’s gross and net bad loan ratios were 0.56% and 0.27%, respectively, both down from the year-ago period. A big part of this strength on asset quality comes from the fact that 86% of the lender’s loan book is made up of individual loans. The riskier loan against property (LAP) and developer loans make up only about 14%.

Of late, LAP is…