Shares of LIC Housing Finance ended flat at Rs 242.95 apiece at the Bombay Stock Exchange (BSE) on Wednesday after the mortgage lender reported lower-than-expected quarterly results.

LIC Housing Finance, the second-largest mortgage lender in India, reported a growth of 147 per cent in net profit to Rs 243.06 crore for the three months to September 30, but the company's loan growth slipped to 23 per cent.

Loan growth was in-line with analysts' projection but this was the company's lowest loan growth since the June quarter of 2010, when loans had enjoyed a growth of 36.8 per cent.

Corporate disbursements slipped 62 per cent to Rs 121 crore from the previous quarter and 71 per cent when compared with the September quarter of 2011.

In contrast with a projection of improvement, the company's net interest margins (NIMs) shrank by 8 basis points sequentially to settle at 2.1 per cent during the three months under review. But, the company received some relief from easing cost of funds.

Varun Varma, a banking analyst at Angel Broking, said, "LIC Housing Finance results were below expectations."

LIC Housing Finance's loan portfolio is at around 3 per cent (Rs 3,000 crore), and the company aims to increase it to 4-6 per cent by the end of current fiscal year. Sanctions have jumped by 52 per cent year-on-year.