LIC HFL Q1 profit grows multifold to Rs 925 crore
Mortgage financier LIC Housing Finance (LICHFL) reported a multifold rise in its profit after tax at Rs 925.48 crore for the quarter ended June 30 on lower provisioning and higher loan growth.
Mumbai: Mortgage financier LIC Housing Finance (LICHFL) reported a multifold rise in its profit after tax at Rs 925.48 crore for the quarter ended June 30 on lower provisioning and higher loan growth. The company had reported a profit after tax of Rs 153.44 crore in the same quarter of the previous fiscal.
"In Q1 of FY22, we had to make a huge provision and there were wage arrears amounting to Rs 150 crore to be paid. This quarter (Q1 of FY23), the higher provisioning requirement was not there. Also, loan growth during the period was at a healthy 10 per cent," it's Managing Director and CEO Y Viswanatha Gowd said.
The housing financier is very positive about demand for housing loans going forward, he said. Net interest income (NII) rose 26 per cent to Rs 1,610.19 crore in the quarter against Rs 1,275.31 crore in the year-ago period. Net interest margin (NIM) stood at 2.54 per cent compared to 2.20 per cent last year. Outstanding loan portfolio rose 10 per cent to Rs 2,55,712 crore against Rs 2,32,548 crore.
The total disbursements rose 76 per cent to Rs 15,201 crore in Q1 FY2023 against Rs 8,652 crore a year ago. Out of this, disbursements in the individual home loan segment were at Rs 13,131 crore compared to Rs 7,650 crore, a growth of 72 per cent. Project loans were at Rs 309 crore against Rs 237 crore for the same quarter in the previous year.
The stage 3 exposure at default as of June 30, 2022, decline to 4.96 per cent from 5.93 per cent as of June 30, 2021. The provisions for Expected Credit Loss (ECL) stood at Rs 6,141.03 crore against Rs 4,727.02 crore as of June 30, 2021. Its incremental cost of borrowing increased to 5.44 per cent from 5.1 per cent.