Money & Banking

LIC Housing Fin Q4 profit falls 40% to ₹421 cr

Our Bureau Mumbai | Updated on June 19, 2020 Published on June 19, 2020

LIC Housing Finance Ltd (LICHFL) reported a 40 per cent decline in fourth quarter standalone net profit at ₹421 crore against ₹694 crore in the year-ago quarter.

A 11 per cent year-on-year (y-o-y) increase in total expenses, including finance costs, fees and commission expenses and other expenses, and a 38 per cent rise in tax expense, weighed on LICHFL’s bottomline.

Dividend

The board has recommended a dividend of ₹8 per equity share of ₹2 each (400 per cent), subject to approval of the members of the company.

Net interest income (difference between interest earned and interest expended) declined 9 per cent to ₹1,089 crore (₹1,202 crore in the year-ago quarter).

Net interest margin (NIM) for 12 months ended March 31, 2020, was a shade lower at 2.34 per cent against 2.38 per cent for the corresponding period ended March 31, 2019.

Total loan disbursements were down 34 per cent y-o-y at ₹11,325 crore in Q4 (January-March) FY20 against ₹17,242 crore for the corresponding period in FY19.

According to the company’s statement, out of this, disbursement in individual home loan segment declined 24 per cent at ₹8,877 crore against 11,743 crore for the corresponding period in FY19, whereas project loans dropped a steep 80 per cent to ₹413 crore compared with ₹2,031 crore for the same quarter in the previous year.

LICHFL’s outstanding loan portfolio increased by 8 per cent y-o-y at ₹2,10,578 crore as of March-end 2020 against ₹1,94,646 crore as of March-end 2019.

Siddhartha Mohanty, MD and CEO, LICHFL, said: “The outbreak of Covid-19 pandemic has thrown up fresh challenges of a magnitude never witnessed in decades.

“Despite the adverse situation, we are comfortably placed in terms of liquidity. We expect the overall outlook for the economy and Housing Finance segment to improve in another 2-3 quarters.”

LICHFL shares closed up 0.32 per cent at ₹284.75 per share on the BSE against the previous close of ₹283.85.

Published on June 19, 2020
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