Amritsar, NFPost: Mortgage lender LIC Housing Finance Ltd has reported a 34% on year growth in standalone net profit at 817.48 crore rupees during the Apr-Jun quarter.
“The rise in profit was mainly attributed to provisioning, which was lower in the quarter as compared to the previous year. However, we have fully provided for whatever is required,” Managing Director and Chief Executive Officer Siddartha Mohanty said.
Provisioning in the first quarter stood at 56 crore rupees as against 253 crore rupees in the year-ago period, he added.
Total income of the company, which provides loans for purchase or construction of residential houses, rose to 4,977.49 crore rupees during Apr-Jun from 4,807.21 crore rupees in the corresponding quarter a year ago.
While net interest income (NII) during Apr-Jun stood at 1,220.61 crore rupees, higher from 1,181.86 crore rupees in the year-ago period, net interest margin (NIM) stood at 2.32% as against 2.41% a year ago.
“The quarter under review coincided with the nation-wide lockdown, which had impacted our business operations. However, progressively with unlocking of activities, our business picked up, especially from the month of June, 2020, Mohanty said.
He added that though the economic activities are likely to take some more time to recover, the company is witnessing an increasing business trend month after month, and is confident of a rebound in the second quarter of fiscal 2020 itself.
“During the phase of lockdown, we have launched several products and other initiatives which will support our business strategies in the new normal. We are closely monitoring all accounts which are in moratorium and ensuring that they smoothly transit to a regular payment mode,” Mohanty said.
Almost 25% of the company’s loan book is under moratorium as of June 30, 2020.
Individual home loans under moratorium accounted for 16% of the home loan portfolio, and nearly 77% of its developer loan book is under moratorium as of June 30, 2020.
The stage 3 exposure at default as on June 30, 2020 stood at 2.83% as against 1.98% as on June 30, 2019. The provisions for Expected Credit Loss (ECL) as a percentage of stage 3 exposure at default stood at 45.32% as of June-end.
Total disbursements were 3,560 crore rupees in Apr-Jun as against 10,261 crore rupees in the corresponding period a year ago.
Of the total, disbursement in individual home loan segment was 3,034 crore rupees as against 7,871 crore rupees, while project loans were 159 crore rupees compared with 829 crore rupees.
The total loan portfolio grew 6% to 209,817 crore rupees as against 197,768 crore rupees. Individual loan portfolio rose 6% to 195,176 crore rupees from 184,155 crore rupees a year ago.
