LIC Housing Finance on Friday reported a net profit of Rs 407.84 crore for the June quarter, up 6.7% from the corresponding period a year ago, as a surge in provisions kept the bottom line subdued.
The company’s total income for the quarter rose more than 14% year-on-year to Rs 3,359.68 crore, mainly on the back of growth in loan disbursal to individuals. Net interest income, which is the difference between interest earned and interest expended, grew by around 25% to Rs 825 crore.
The company witnessed a 20 bps on-year expansion in its net interest margin for the quarter, which stood at 2.61%. However, on a quarter-on-quarter basis, NIM was 10 bps lower than 2.71% for the March quarter.
In terms of asset quality, the housing finance major witnessed an improvement in its gross and net non-performing assets as a percentage of its total advances. Gross NPAs came in at 0.59%, 1 basis point lower than at the end of the June quarter last year, while net NPAs stood at 0.28%, 5 basis points lower than last year.
However, the company still witnessed surge in provisions as it made provisions of Rs 92 crore on account of aging of old non-performing project loans.
“LIC Housing Finance has started the financial year on a strong note. We have registered a healthy disbursement growth rate and robust NII growth, delivering higher net interest margins and maintained a very good asset quality,” Sunita Sharma, managing director and chief executive officer, said in a post-results statement.
As on June 30, the company’s outstanding mortgage portfolio stood at Rs 1.27 lakh crore, up 15% from the corresponding quarter a year ago. Outstanding individual loans came in at Rs 1.23 lakh crore, up 15% from Rs 1.07 lakh crore as on June 30 last year. Outstanding developer loans grew 39% to Rs 3,756 crore.