LIC Housing Finance on Friday reported a standalone net profit of ₹421.43 crore for the three months to March, down 39% from the same period last year, on account of lower net interest income (NII).
The mortgage lender’s NII stood at ₹1,089 crore, down 9% on a year-on-year (y-o-y) basis. Its net interest margin (NIM), a key indicator of profitability, for 12 months ended 31 March stood at 2.34% as against 2.38% in the same period last year.
The company said its were restricted during the first lockdown up to 19 April, during which measures to work from home were put in place. It said that it has been able to open almost all the branches as of now.
“The first lockdown restricted disbursements during April 2020. Operations at most branches have resumed since May and necessary safety measures have been taken," it said in a statement.
LIC Housing Finance’s individual loan portfolio stood at ₹1.96 trillion and its project loan portfolio stood at ₹14,237 crore, up 8% and 9%, respectively as on 31 March on a y-o-y basis. The lender’s total outstanding portfolio grew at 8% to ₹2.1 trillion in the same period. However, its disbursements were down for both portfolios in the March quarter of FY20. While individual loan disbursals were down 28% y-o-y to ₹10,912 crore, project loan disbursals were down 80% to ₹413 crore in the same period.
The lender’s weighted average cost of funds has fallen to 8.08% in FY20, from 8.49% in FY19. During FY20, its incremental cost of funds stood at 7.9%. Its outstanding borrowings were at ₹1.91 trillion as on 31 March. Of this, 65% is through non-convertible debentures (NCDs), 22% from banks and 7% through deposits, among others.
Siddhartha Mohanty, chief executive, LIC Housing Finance said in a statement that considering the headwinds due to the general economic slowdown, the company, he believes, has registered a decent performance.
“The outbreak of covid-19 pandemic has thrown up fresh challenges of a magnitude never witnessed in decades. Even as the situation is evolving, we are focusing on maintaining asset quality and restarting disbursements and transitioning to a more technology-driven business process," said Mohanty.
He said he expects the overall outlook for the economy and the housing finance segment to improve in another two-three quarters.