LIC Housing Finance Ltd’s (LICHFL) net profit edged up 2 per cent to ₹791 crore in the second quarter ended September 30, 2020 as against ₹772 crore in the year ago quarter.
Interest income in the reporting quarter was a shade lower at ₹4,938 crore as against ₹4,954 crore in the year ago period.
Finance costs were almost flat at ₹3,700 crore (₹3,702 crore).
The provision burden for impairment on financial instruments was 63 per cent lower at ₹103 crore (₹281 crore).
LICHFL’s outstanding loan portfolio increased 5 per cent year-on-year to ₹2,13,349 crore as at September-end 2020 (₹2,03,037 crore as at September-end 2019).
During the quarter, outstanding loans increased by ₹3,532 crore.
Net interest margins for the quarter ended September 30, 2020 came down 8 basis points to 2.34 per cent against 2.42 per cent in the year ago period.
Siddhartha Mohanty, MD & CEO, said, “…With the gradual unlocking of the economy, we have witnessed a significant pickup in business activities across the country, with re-emergence of demand, which is demonstrated in the pick-up of the disbursements in Q2, which has helped us reach pre-Covid levels of activities.”
“With the ongoing festive season showing buoyancy, we are confident of further improvement in business volumes in the coming quarters,” he added.