LIC Housing Finance net profit up 7% at Rs407 crore
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Mumbai: Housing finance company LIC Housing Finance on Friday reported a marginal 7% growth in net profit at Rs.407.84 crore in the quarter ended June due to higher provisioning.
The company had reported a net profit of Rs.382.13 crore in the same period last year. “The profit was muted as there was extra provisioning of Rs.92 crore on account of aging of old project loan NPAs, which had already been classified as NPAs as per norms,” the company’s managing director and CEO Sunita Sharma said after the announcement of the result.
There was also Rs.20 crore worth of arrears paid to employees on account of wage revision. Gross non performing assets was at 0.59% while net NPA stood at 0.28%. Net interest margins improved to 2.61% from 2.41% in the same period last year. Total income was Rs.3,380 crore as against Rs.2,965 crore during the same period previous year. It disbursed Rs.7,064 crore in the individual loan segment, while in project loan segment disbursement was Rs.478 crore.
The outstanding mortgage portfolio as on 30 June was Rs.1,27,437 crore as against Rs.1,10,411 crore last year. The individual loan portfolio stood at Rs.1,23,681 crore as against Rs.1,07,704 crore. Developer loan portfolio stood at Rs.3,756 crore as against Rs.2,708 crore.
Angel Broking senior equity research analysts, Siddharth Purohit said, “LIC Housing has reported a good set of numbers for the quarter. While the reported PAT grew by only 7%, NII growth was strengthen up by 25%. The company took additional provisioning to the tune of Rs.90 crore due to aging of some NPAs in the project loans and hence provisions remained higher at Rs.116.5 crore vs Rs.44.3 crore on year.” The company’s scrip ended at Rs.525.05, up 3.65% on BSE.