The quarter one results for FY 2010-11 has been good for LIC housing finance. The company has booked 51% growth in its loan sanctions amounting to Rs 5,348 crore and a 41%growth in loan disbursments amounting to Rs 3,392 crore.

"About 60% of the loans were for purchase of new homes and about 25% for existing homes," RR Nair, director and chief executive officer, LIC Housing Finance said.

With rising realty sector prices in Delhi and Mumbai, Nair said that he expects the prices to stabilize from this sector.

The company's outstanding mortgage portfolio as on June 30, 2010 was Rs 40,030 crore as against Rs 29,254 crore as on June 30, 2009, thereby showing a growth of 37%.

The gross and net NPAs of the company stood at 0.92% and 0.35% respectively at the end of Q1 as compared to 1.51 % and 0.65 % for the same period in the previous year.

The company has posted a 71% growth in net profit for the first quarter of this fiscal amounting to Rs 212.02 crore as compared to Rs 123.84 crore in the quarter ended June 2009.