LIC Housing Finance posts flat Q3 profit as net interest margin dips

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Mumbai | Published: January 26, 2018 3:26:50 AM

LIC Housing Finance on Thursday reported a 1.6% year-on-year fall in standalone net profit for the quarter ended December to Rs 491 crore, on the back of a 2% YoY drop in net interest income to Rs 898 crore and a 7% rise in net provisions and write-offs.

LIC Housing Finance, LIC Housing Finance Q3 profit, Q3 profit, interest LIC Housing Finance on Thursday reported a 1.6% year-on-year fall in standalone net profit for the quarter ended December to Rs 491 crore, on the back of a 2% YoY drop in net interest income to Rs 898 crore and a 7% rise in net provisions and write-offs.

LIC Housing Finance on Thursday reported a 1.6% year-on-year fall in standalone net profit for the quarter ended December to Rs 491 crore, on the back of a 2% YoY drop in net interest income to Rs 898 crore and a 7% rise in net provisions and write-offs. Total provisions stood at Rs 1,227 crore as on December 31, 2017, up from Rs 969 crore at the end of December 2016, the company said in a presentation to analysts. Asset quality worsened, with the gross non-performing asset (NPA) ratio rising 7 basis points (bps) from the end of September to 0.87% and the net NPA ratio ticking up 6 bps to 0.49%. For the quarter under review, LIC Housing Finance clocked a 27% y-o-y growth in disbursements to Rs 12,301 crore, the company said. Disbursements to individuals accounted for 92% of overall disbursements.

Disbursement in the project loan segment fell 13% YoY to Rs 978 crore. Net interest margin for the June quarter stood at 2.33%, against 2.38% at the end of the September quarter. The company’s gross income in Q3 rose 6% YoY to Rs 3,767.58 crore. Revenue from operations grew 6% to Rs 3,738 crore from Rs 3,528 crore a year ago. The outstanding loan portfolio as on December 31, 2017 was Rs 1.56 lakh crore, up 15% from Rs 1.35 lakh crore as on December 31, 2016. The individual loan portfolio stood at Rs 1.5 lakh crore, as against Rs 1.31 lakh crore a year ago, a growth of 15%. The developer loan portfolio stood at Rs 6,189 crore as on December 31, 2017, against Rs 4,488 crore, 38% higher than at the end of December 2016. The company borrowed Rs 16,430 crore during the quarter under review at 7.38%. During the same period a year ago, it had borrowed Rs 13,967 crore at 7.84%.

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