LIC Housing Fin Q4 net down 5.33% at Rs 398.9 cr on impairment spike

To raise equity capital through prefential issue to LIC

LIC Housing Finance Ltd's net profit fell by 5.33 per cent to Rs 398.9 crore in the fourth quarter ended March 2021 (Q4FY21) on a sharp rise in impairment on the financial instruments.

It had posted a net profit of Rs 421.43 crore in the quarter ended March 2020 (Q4FY21).

For the full financial year FY21, the net profit rose 13.8 per cent to Rs 2,734.3 crore from Rs 2,401.8 crore in FY20.

The Board of Directors has recommended a dividend of 425 per cent for the financial year, LIC HFC said in a statement.

Its stock closed almost half a per cent lower at Rs 521.7 per share on BSE.

The net interest income (NII) in the reporting quarter rose by 33 per cent to Rs 1,505 crore from Rs 1,134 crore in Q4FY21. Net Interest Margin (NIM) for the quarter improved to 2.66 per cent as against 2.17 per cent for Q4FY20.

The impairment costs on financial instruments rose multifold to Rs 977.19 crore in Q4FY21 from Rs 27.25 crore in Q4FY20. The provisions on Expected Loss Basis (ECL) stood at Rs 3,971.42 crore as on March 31, 2021, as against Rs 2,612.39 cr as on March 31, 2020.

Y Viswanatha Gowd, managing director and chief executive, LIC HFL said there has been an increase in delinquency levels during the Q4 FY 21, mostly arising out of pandemic impact on corporate entities and individuals.

Its gross Non-performing Assets (called stage three exposure at default) rose to 4.12 per cent in March 2021 from 2.86 per cent in March 2020.

This (NPAs level) is being monitored very stringently. It is a matter of highest priority and I am confident of addressing it properly. Gowd added.

Gowd said there has been an increase in delinquency levels during Q4FY21, mostly arising out of pandemic impact on corporate entities and individuals.

The portfolio of loans to individuals rose 10 per cent to Rs 2,16,047 crore in March 2021 from Rs 1,96,340 crore a year ago. The project loan portfolio expanded to Rs 15,956 crore on March 31, 2021 as against Rs 14,237 crore in March 2020. The total outstanding portfolio grew at 10 per cent from Rs 2,10,578 crore in March 2020 to Rs 2,32,003 crore in March 2020.