LIC Housing Finance reported a 37 per cent year-on-year decline in third quarter (Q3FY23) standalone net profit at ₹480 crore due to jump in loan loss provisions even as total disbursements declined.

The standalone housing finance company had recorded a net profit of ₹767 crore in the year ago quarter.

Net Interest Income (difference between interest earned and interest expended) was up 10 per cent yoy at ₹1,606 crore (₹1,455 crore in the year ago quarter).

Loan loss provisions (impairment on financial instruments) shot up a little over two times to ₹763 crore (₹356 crore).

Total disbursements declined about 9 per cent yoy at ₹16,100 crore i (₹17,770 crore). Of this, disbursement in the individual home loan segment declined about 11 per cent to ₹13,580 crore (₹15,341 crore), while project loans were up 46 per cent at ₹427 crore . (₹293 crore).

As of December-end 2022, the individual home loan portfolio stood at ₹2,23,064 crore against ₹1,95,901 crore (as at December-end 2021), a growth of 14 per cent. Project loan portfolio stood at ₹10,857 crore . (₹14,091 crore).

Net Interest Margin (NIM) was unchanged at 2.42 per cent.

The provisions for expected credit loss stood at ₹7,285 crore as on December 31, 2022 with a coverage of 51 per cent, as against ₹5,716 crore as on December 31, 2021 and ₹6,522 crore as on September 30, 2022, per the HFC’s statement.

The stage 3 exposure at default as on December 31, 2022 stood at 4.75 per cent as against 5.04 per cent as on December 31, 2021 and 4.90 per cent as on September 30, 2022, it added.

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