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LIC Housing Finance Ltd’s (LICHFL) second-quarter net profit shot up 290 per cent y-o-y to ₹1,188 crore against ₹305 crore on the back of robust growth in net interest income and a decline in provision towards impairment in financial instruments even as overall loan disbursements were lower.
Net interest income rose 83 per cent y-o-y to ₹2107 crore (₹1,150 crore in the year ago period). Provision towards impairment in financial instruments declined 26 per cent y-o-y to ₹419 crore (₹566 crore).
Total loan disbursements, including individual housing loans, non-housing individual loans, non-housing commercial loans and project finance, declined 13 per cent y-o-y to ₹14,665 crore (₹16786 crore). The total outstanding portfolio was up 6 per cent y-o-y to ₹2,77,987 crore (₹2,62,336 crore). Net interest margin improved to 3.04 per cent from 1.78 per cent a year ago.
“Focus on two fronts”
Tribhuwan Adhikari, Managing Director and Chief Executive Officer, said “Demand continues to remain robust as the overall economy is doing well along with stabilisation of interest rates. We have aimed to focus on two fronts. The first is to consolidate our position as a market leader by building on distribution strength. The second and equally important effort is on the recovery front, to reduce non-performing assets (NPA).
“The initial trends from this festival season are in a positive direction and hopefully, we should be able to maintain the current growth trajectory in the remaining quarters of this financial year.”
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