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LIC Housing Finance (LIC HFL) reported a 69 per cent year-on-year (yoy) decline in second quarter net profit at ₹248 crore against ₹791 crore in the year-ago quarter due to increase in provisions on account of implementation of resolution plans, especially in the case of corporate entities.
The housing finance company upped the provisions by ₹424.49 crore during the quarter in respect of 113 corporate entities. It had an exposure aggregating ₹4,629.46 crore to them before implementation of the resolution plans.
Total income, including other income, declined 5.35 per cent to ₹4,715 crore. Net interest income dropped 5.25 per cent y-o-y to ₹1,173 crore.
Total disbursements rise
During the quarter, total disbursements at ₹16,110 crore were up 29 per cent y-o-y.
Within overall disbursements, individual home loan disbursements were at ₹14,330 crore as against ₹10,373 crore, up by 38 per cent, whereas project loan disbursements were lower at ₹353 crore as against ₹803 crore.
Net interest margins stood at 2 per cent as against 2.20 per cent for Q1FY22.
Y Viswanatha Gowd, MD & CEO, said, “Business gradually improved towards the end of first quarter in line with the overall sentiments. This is reflected in higher disbursements in Q2…”
“The company expects a better Q3 which coincides with the festival season and hopes to grow the business volumes in the quarters ahead,” he said.
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