LIC Housing Finance Q2 net profit plunges 69%
Shares of LIC Housing Finance traded lower by 6% intraday on October 22, a day after the company declared its September quarter results.
The mortgage lender on October 21 reported a 68.66% decline in its standalone profit after tax at Rs 247.86 crore in the September quarter on higher provisioning for non-performing loans. The figure stood at Rs 790.90 crore in the year-ago period.
LIC Housing Finance net profit was hit by extra provisioning of Rs 600 crore for non-performing loans and for One-Time Restructuring (OTR) schemes of the RBI during the quarter.
Also, the lower NII and higher expenses were the key negatives.
Total disbursements rose 29 percent to Rs 16,110 crore as against Rs 12,443 crore, while individual home loan disbursements stood at Rs 14,330 crore compared to Rs 10,373 crore and project loans were at Rs 353 crore as against Rs 803 crore. The figures are for year-on-year basis.
The mortgage lender’s net interest margin for the quarter dipped to 2% as against 2.20% in the June quarter, reflecting a fall in lending rates.
The company’s total income for the quarter was lower at Rs 4715 crore as compared with Rs 4982 crore during the same period last year. The net interest income was Rs 1173 crore as against Rs 1238 crore.
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