LIC Housing Finance Q1 profit falls to ₹153 crore
[ad_1]
Read More/Less
LIC Housing Finance Ltd (LIC HFL) reported an 81 per cent drop in net profit at ₹153 crore in the first quarter ended June 30, 2021 against ₹817 crore in the year-ago period.
The bottomline was weighed down by a sharp rise in provision towards “impairment on financial instruments” and wage revision.
Net interest income (difference between interest earned and interest expended) increased by 4.5 per cent yoy to ₹1,275 crore (₹1,221 crore in the year-ago quarter).
Provision towards “impairment on financial instruments” jumped to ₹830 crore (₹56 crore).
Y Viswanatha Gowd, Managing Director & CEO, said there has been an increase in delinquencies, mostly due to economic activities being impacted in Q1.
He emphasised that with improvement in economic activities and increased and focussed efforts in recovery, LIC HFL is confident of controlling the same.
Wage revision impact
Employee benefit expenses rose to ₹215 crore (₹80 crore). Based on board of directors approval on June 15 on wage revision with effect from August 1, 2017, a sum of ₹124 crore has been recognised by the company during the quarter on an estimated basis.
The lender, in a statement, said total disbursements soared 143 per cent yoy to ₹8,652 crore in Q1 FY2022 from ₹3,560 crore in the year-ago period.
Out of this, disbursement in the individual home loan segment shot up 152 per cent yoy at ₹7,650 crore as against ₹3,034 crore in the year ago period. Project loans disbursement were at ₹237 crore compared with ₹159 crore for the same quarter in the previous year.
Outstanding loans portfolio increased by 11 per cent yoy to ₹2,32,548 crore (₹2,09,817 crore).
Net interest margin (NIM) for the quarter declined to 2.20 per cent as against 2.32 per cent for the same period in the previous year.
Covid wave
Gowd said LICHFL’s performance was impacted due to the second wave of Covid-19, resulting in lockdowns being imposed in several States.
“However, with increased vaccination drive and containment of the pandemic spread, since June 2021, the business has picked up. We expect a rebound in the remaining months of FY2022,” he added.
[ad_2]