LIC Housing Finance Q4 profit up 180% to Rs 1,118 cr, credit costs drop

The company's board recommends a dividend of Rs 8.5 per share of Rs 2 each.

LIC Housing Finance’s net profit rose by 180 per cent to Rs 1,118.6 crore for the fourth quarter ended March 2022 (Q4 FY22), gaining from an increase in net interest income and sharp dip in credit costs.

It had posted a net profit of Rs 398.92 crore in Q4 FY21.

However, its net profit for FY22 fell to Rs 2,287.28 crore from Rs 2,734.34 crore in FY21. The company’s board recommended a dividend of Rs 8.5 per share of Rs 2 each (425 per cent) for 2021-22, the mortgage major informed BSE. LIC HFC stock closed 0.84 per cent higher at Rs 358.65 per share on BSE.

The Net Interest Income (NII) rose by nine per cent to Rs 1,637 crore in Q4Fy22, as against Rs 1,505 crore in Q4Fy21. The Net Interest Margin were flat at 2.65 per cent as against 2.66 per cent for Q4 FY 2021.

The amounts set aside for impairment on financial instruments declined sharply to Rs 176.93 crore in Q4 FY22 from Rs 977.19 crore in Q4 FY22.

The total disbursements were lower at Rs 19,315 crore in Q4 FY 22, as against Rs 22,362 crore in Q4 FY21. Y Viswanatha Gowd, managing Director & Chief Executive Officer, LIC HFC said the disbursement dipped as the branch operations were affected in January-Mid February 2022 due to third-wave of pandemic.  

The total outstanding portfolio expanded by eight per cent to Rs 2,51,120 crore March 2022 from Rs 2,32,003 crore in the earlier year. Out of which, the Individual Home Loan portfolio rose by 13 per cent at Rs 2,04230 crore from Rs 1,80,665 crore in March 2021. The Project loan portfolio shrunk to Rs 12,978 crore as on March 31, 2022, from Rs 15,956 crore as on March 31, 2021.