LIC Housing Finance’s third-quarter net profit fell 23 per cent to Rs 236.24 crore (Rs 305.63 crore, a year ago) as the home loan provider made higher provisions to cover loan losses and finance costs increased.
In the October-December period, the housing finance arm of Life Insurance Corporation of India set aside Rs 31.56 crore to cover potential loan losses.
In the corresponding quarter last year, the company had realised Rs 80 crore due to reversal in provisions.
Finance costs increased 27 per cent to Rs 1,535 crore (Rs 1,213 crore).
Total income from operations for the Mumbai-based housing finance company increased 23 per cent to Rs 1,935 crore.
Total loan disbursement during the quarter was up 27 per cent to Rs 6,005 crore.
Bulk of this growth came from the individual loan segment, where disbursements grew 21 per cent to Rs 5,508 crore.
The company had an outstanding loan portfolio of Rs 72,704 crore as on December 31, 2012.
Shares of LIC Housing Finance closed at Rs 252.15 a share, down 5.88 per cent on the Bombay Stock Exchange.
Keywords: LIC Housing Fin Q3 net drops