LIC Hsg Finance's Q2 net up 23% to Rs 305 cr on dip in provisions

Net interest income and margin both decline; disbursements up 4% to Rs 16,786 crore

LIC Housing Finance Ltd’s net profit rose by 23 per cent year on year (YoY) to Rs 304.97 crore in the second quarter ended September 2022, predominantly due to a decline in provisions. It had posted a net profit of Rs 247.86 crore in Q2FY22.

Net interest income (NII) declined by 0.8 per cent to Rs 1,163 crore in the reporting quarter from Rs 1,173 crore a year ago. Its net interest margin also moderated to 1.8 per cent in Q2Fy23 from 2.0 per cent a year ago.

The impairments for financial instruments declined sharply to Rs 373.8 crore from Rs 625.34 crore a year ago. Employee benefit expenses also fell to Rs 111.67 crore from Rs 147.14 crore on Q2FY22.

Total disbursements were up four per cent to Rs 16,786 crore in Q2FY23, from Rs 16,110 crore in Q2FY22. Of this, disbursements in the individual home loan segment were flat at Rs 14,300 crore (Rs 14,330 crore in Q2FY22). Project loans stood at Rs 407 crore compared with Rs 353 crore during the year-ago quarter, up 15 per cent.

The total loan portfolio expanded by 10 per cent to Rs 2,62,336 crore from Rs 2,37,660 crore on September 30, 2021. Of this, individual home loans grew by 15 per cent from Rs 1,88,348 crore to Rs 2,16,771 crore.

The firm's gross non-performing assets declined to 4.91 per cent as of September 2022 from 5.14 per cent a year ago. The net NPAs were also down to 2.83 per cent from 2.98 per cent at end of September 2021. The provision coverage ratio was almost flat at 43.65 per cent as against 43.86 per cent.