LIC Housing Finance reported a steady performance for FY 2025-26, with Profit After Tax rising 3% year-on-year to ₹5,595.15 Crore from ₹5,429.02 Crore in the previous year. Total income grew to ₹28,771.66 Crore from ₹28,046.13 Crore, reflecting a year-on-year growth of 2.59%. The Board recommended a 500% dividend of ₹10 per equity share on a face value of ₹2 per share, subject to shareholder approval at the 37th Annual General Meeting scheduled for 28th August, 2026.

Key Financial Highlights

The company's financial performance for FY 2025-26 reflected sustained earnings growth, improved asset quality, and a moderation in funding costs. The following table summarises the key financial metrics:

Loan Portfolio and Disbursements

The total loan portfolio grew 4% year-on-year to ₹3,20,707 Crore as at March 31, 2026, from ₹3,07,732 Crore in the previous year. The retail loan portfolio expanded to ₹3,11,517 Crore from ₹2,98,519 Crore, driven by sustained momentum in both housing and non-housing individual lending. The Project Finance portfolio remained largely stable at ₹9,190 Crore against ₹9,213 Crore in the previous year.

Total disbursements grew 4% to ₹66,544 Crore from ₹64,022 Crore in the previous year. The segment-wise disbursement performance is presented below:

The Individual Home Loan segment constituted approximately 83% of total disbursements. Nearly 85% of IHL business was linked to the salaried class. The company sanctioned 1,71,902 Individual Housing Loans amounting to ₹55,666 Crore during FY 2025-26.

Loan Portfolio Composition

The outstanding loan portfolio as at March 31, 2026 was composed as follows:

Asset Quality

Asset quality improved during the year, with Gross Non-Performing Assets declining to ₹6,902.79 Crore, representing 2.15% of the loan portfolio, compared to ₹7,598.35 Crore (2.47%) as at March 31, 2025. Net NPAs also improved to ₹3,440.38 Crore (1.08%) from ₹3,704.42 Crore (1.22%) in the previous year.

The impairment loss allowance decreased to ₹4,569 Crore in FY 2025-26 from ₹4,899 Crore in the previous year, reflecting an improvement in the overall credit risk profile of the portfolio. The company also completed the sale of one loan asset to an Asset Reconstruction Company during the year.

Funding and Resource Mobilisation

During FY 2025-26, the company mobilised funds aggregating to ₹1,05,625.19 Crore through Non-Convertible Debentures, term loans, NHB refinance, commercial paper, Pass-Through Certificates, and public deposits. The company availed refinance of ₹11,300 Crore from the National Housing Bank. Outstanding NCDs stood at ₹1,28,882.96 Crore as at March 31, 2026. The outstanding borrowings totalled ₹2,77,423 Crore.

The company's borrowing mix shifted towards floating rate instruments, with approximately 82% of borrowings at floating rates and 18% at fixed rates during the year. The incremental cost of funds for FY 2025-26 was 6.94%. The company also successfully launched its inaugural securitisation programme, raising ₹1,000 Crore through Pass-Through Certificates, which were subsequently listed on the NSE on May 5, 2026.

Key financial ratios and productivity metrics for the year included:

Distribution Network and Digital Initiatives

As at March 31, 2026, LIC Housing Finance's network comprised 10 Regional Offices, 303 Marketing Offices, 23 Back Offices, and 39 Cluster Offices, along with a representative office in Dubai. Online loan approvals during FY 2025-26 amounted to ₹6,530 Crore.

During the year, the company introduced a Straight Through Process for loan processing, reducing turnaround time and improving operational efficiency. It also launched a pilot implementation of e-documentation through the Legality platform. Business sourced through the Lead Management platform grew 83.47%, increasing from ₹835 Crore in FY 2024-25 to ₹1,532 Crore in FY 2025-26. More than 75% of monthly collections were received through digital and auto-debit payment channels.

Awards and Recognition

During FY 2025-26, LIC Housing Finance received recognition across multiple industry forums:

• NHB Excellence Awards – 2nd Edition: Best Housing Finance Company
• Radio City Business Titans Awards: Excellence in Outstanding Contribution to Housing Finance Sector
• Mirchi Business Class – Bali 2026: Excellence in Housing Finance
• FICCI CSR Summit & Awards 2025: Special Jury Commendation Award in the Women Empowerment category
• Pritvi Awards 2025: Excellence in ESG & Sustainability Initiatives
• India CSR Awards 2025: Excellence in Waste Management Initiative
• 8th ICC Social Impact Awards 2026: Runner-up in the Gender Equality and Empowerment category

LIC Housing Finance will convene its 37th Annual General Meeting (AGM) on Friday, August 28, 2026, to secure shareholder authorization for a significant capital raising measure. The primary objective of the meeting is to pass a special resolution allowing the Board to issue Redeemable Non-Convertible Debentures (NCDs) or other Tier II capital instruments worth up to ₹55,000 crore on a private placement basis. This authority is critical for the housing finance company’s liquidity management and long-term funding strategy, enabling it to raise debt capital efficiently within the regulatory framework set by the Reserve Bank of India (RBI). The meeting will also address the declaration of a final dividend of ₹10 per equity share for the financial year ended March 31, 2026, and the re-appointment of Director P Koteswara Rao, who retires by rotation.

The proposed NCD issuance limit of ₹55,000 crore is subject to the existing overall borrowing powers approved by shareholders at the 30th AGM in 2019, which capped total borrowings at ₹4,00,000 crore. As of June 30, 2025, approximately ₹1,29,000 crore of this borrowing limit remains available. The new authority will remain valid until the earlier of the 38th AGM for FY27 or the exhaustion of the ₹55,000 crore limit. The Board emphasized that none of the directors or key managerial personnel have any financial interest in this resolution. The meeting will be conducted via Video Conferencing (VC) or Other Audio-Visual Means (OAVM) in compliance with Ministry of Corporate Affairs (MCA) circulars, with proceedings deemed held at the company’s registered office in Mumbai.

Key Agenda Items and Shareholder Actions

Shareholders holding shares as of the cut-off date of Friday, August 21, 2026, are eligible to vote and receive dividends. The remote e-voting window opens on Tuesday, August 25, 2026, at 9:00 a.m. IST and closes on Thursday, August 27, 2026, at 5:00 p.m. IST. Voting rights are proportional to shareholding on the cut-off date. Once cast, votes cannot be modified. For those attending the virtual meeting, access is restricted to 1,000 participants on a first-come, first-served basis, though large shareholders (holding 2% or more), promoters, and institutional investors are exempt from this cap.

The final dividend of ₹10 per share will be paid between September 17, 2026, and September 27, 2026, subject to Tax Deducted at Source (TDS). Resident members with valid PANs will face a TDS rate of 10%, while non-residents are subject to a 20% withholding tax unless a beneficial Double Tax Avoidance Agreement (DTAA) applies. Shareholders must update their bank mandates and KYC details with their Depository Participants (DPs) or the Registrar and Transfer Agent (RTA), MUFG Intime India Private Limited, to ensure timely receipt of dividends. Physical shareholders must submit Form ISR-1 and related documents by August 12, 2026.

What the Numbers Show

The request for a ₹55,000 crore NCD issuance limit underscores the company’s reliance on long-term debt funding to support its asset growth trajectory. With ₹1,29,000 crore of existing borrowing headroom remaining under the broader ₹4,00,000 crore cap, this specific authorization provides operational flexibility for near-term fundraising without requiring fresh shareholder approval for each tranche. The declaration of a ₹10 per share dividend signals continued profitability and cash flow generation in FY26, rewarding investors despite the high leverage typical of the housing finance sector. The re-appointment of P Koteswara Rao, a Fellow Member of ICAI with extensive experience in credit appraisal and investment management, ensures continuity in board expertise crucial for navigating complex financial regulations.