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LIC Housing Finance Q2 net down 69%; impairment expenses rise sharply

Its stock closed 1.1 per cent higher at Rs 440.35 per share on BSE

LIC Housing Finance | Q2 results | Housing Finance

Abhijit Lele  |  Mumbai 

LIC Housing

Ltd’s net profit declined by 68.7 per cent to Rs 247.86 crore in the second quarter ended September 2021 (Q2Fy22) on fall in interest income and sharp rise in expenses for impairments.

It had posted a net profit of Rs 790.9 crore in Q2Fy21.

Its net interest income (NII) for the reporting quarter fell by 5.25 per cent to Rs 1,173 crore from Rs 1,238 crore in the second quarter of last year (Q2Fy21). The net interest margin moderated from 2.34 per cent in Q2Fy21 to 2.0 per cent in Q2Fy22.

The expenses for impairment on financial instruments jumped to Rs 625.34 crore in Q2Fy22 from Rs 103.02 crore a year ago.

The gross non-performing assets (NPAs) rose to 5.14 per cent in September 2021 from 2.79 per cent a year ago, according to an investor presentation.

Its stock closed 1.1 per cent higher at Rs 440.35 per share on BSE.

The total loan portfolio expanded by 11 per cent to Rs 2,37,660 crore in September 2021 as against Rs 2,13,349 crore a year ago. Out of which, individual Home Loans grew at 15 per cent from Rs 1,63,218 crore in Q2Fy21 to Rs1,88,348 crore in Q2Fy22.

The disbursements in Q2Fy22 were up 29 per cent at Rs 16,110 crore from Rs 12,443 crore in the same quarter last year.

There has been significant improvement in business in Q2 FY22 compared to the corresponding previous quarter with gradual lifting of restrictions post the second wave, HFC said in a statement.

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First Published: Thu, October 21 2021. 20:51 IST