LIC Housing Finance Q2 net profit down 69% to Rs 247.86 crore on greater provisioning for bad loans
Home mortgage lending institution LIC Housing Financing Ltd (LICHFL) on Thursday reported a 68.66 percent decrease in its standalone revenue after tax at Rs 247.86 crore in the September quarter on greater provisioning for non-performing loans.It had published a revenue after tax of Rs 790.90 crore in the corresponding quarter of the previous fiscal.
“The earnings got struck as we made additional provisioning of Rs 600 crore for non-performing loans and for One-Time Restructuring (OTR) plans of the RBI throughout the quarter,” LIC Housing Financing Handling Director and CEO Y Viswanatha Gowd said.Total disbursements rose 29 percent to Rs 16,110 crore as versus Rs 12,443 crore. Private mortgage dispensations stood at Rs 14,330 crore compared to Rs 10,373 crore while job loans were at Rs 353 crore as against Rs 803 crore. The figures are for year-on-year basis.Gowd stated service slowly improved towards the end of very first quarter in line with the total beliefs, which is shown 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, specific home mortgage grew at 15 percent to Rs 1,88,348 crore from Rs 1,63,218 crore.The net interest earnings dipped to Rs 1,173 crore from Rs 1,238 crore in the exact same quarter of the previous fiscal.Net interest margins decreased to 2 percent in the newest September quarter.Collection effectiveness for routine clients for September stood at 99 percent, the lending institution stated in a release.The 3rd 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 stated that he anticipates the 3rd quarter of this fiscal
to be much better as it coincides with the festival season and wants to grow business volumes in the quarters ahead.Shares of the lending institution increased over 1 percent to close at Rs 440.35 each on the BSE. Released at Thu, 21 Oct 2021 12:28:28 -0500