LIC Housing Finance Ltd (LICHFL) reported a 5 per cent year-on-year (y-o-y) decline in fourth quarter standalone net profit at ₹399 crore against ₹421 crore in the year ago quarter as provision towards impairment on financial instruments jumped.
The board of directors recommended a dividend of ₹8.50 per equity share (425 per cent) of ₹2 each, subject to approval of the members of the company at the forthcoming Annual General Meeting.
Net interest income rose 33 yoy to ₹1,505 crore (₹1,134 crore in the year ago quarter).
Provision towards impairment on financial instruments shot up to ₹977 crore (₹27 crore).
Employee benefit expenses came down 33 per cent yoy to ₹59 crore (₹88 crore).
Loan portfolio increased about 10 per cent yoy to ₹2,28,114 crore as at March-end.
Preferential allotment
Meanwhile, LICHFL’s board approved offer of 4.54 crore equity shares to the promoter — Life Insurance Corporation of India (LIC) — through preferential allotment on private placement basis. This is subject to shareholders approval at their extraordinary general meeting.
Post-issue, the shareholding of LIC in LICHFL will go up from 40.31 per cent now to 48.49 per cent.