LIC Housing Finance Q2 net profit down 69% to Rs 247.86 crore on higher provisioning for bad loans

LIC Housing Finance Q2 net profit down 69% to Rs 247.86 crore on higher provisioning for bad loans

Mortgage lender LIC Housing Finance Ltd (LICHFL) on Thursday reported a 68.66 percent decline in its standalone profit after tax at Rs 247.86 crore in the September quarter on higher provisioning for non-performing loans.

It had posted a profit after tax of Rs 790.90 crore in the corresponding quarter of the previous fiscal.

“The profit got hit as we made extra provisioning of Rs 600 crore for non-performing loans and for One-Time Restructuring (OTR) schemes of the RBI during the quarter,” LIC Housing Finance Managing Director and CEO Y Viswanatha Gowd said.

Total disbursements rose 29 percent to Rs 16,110 crore as against Rs 12,443 crore. Individual home loan disbursements stood at Rs 14,330 crore compared to Rs 10,373 crore while project loans were at Rs 353 crore as against Rs 803 crore. The figures are for a year-on-year basis.

Gowd said business gradually improved towards the end of first quarter in line with the overall sentiments, which is reflected in higher disbursements in the second quarter.

The total loan portfolio grew 11 percent to Rs 2,37,660 crore from Rs 2,13,349 crore. Of this, individual home loans grew at 15 percent to Rs 1,88,348 crore from Rs 1,63,218 crore.

The net interest income dipped to Rs 1,173 crore from Rs 1,238 crore in the same quarter of the previous fiscal.

Net interest margins declined to 2 percent in the latest September quarter.Collection efficiency for regular customers for September stood at 99 percent, the lender said in a release.

The third stage exposure at default as on September 30, 2021 stood at 5.14 percent as against 2.79 percent in the year-ago period.

Gowd said that he expects the third quarter of this fiscal to be better as it coincides with the festival season and hopes to grow the business volumes in the quarters ahead.

Shares of the lender rose over 1 percent to close at Rs 440.35 apiece on the BSE

Source: Money Control

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