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LIC Housing Finance’s internet earnings down 81% to Rs 153.44 crore in Q1 FY22

Mortgage financier LIC Housing Finance (LIC HFL) on Thursday said an eighty-one per cent decline in its standalone internet income at Rs 153.44 crore in the quarter ended June due to accelerated provisioning for non-performing loans. The lender had stated earnings after tax of Rs 817.48 crore in the corresponding quarter of the preceding fiscal.

“Our internet earnings dropped due to the fact of provisioning for NPAs. Apart from that, there used to be income fees which additionally impacted,” LIC Housing Finance Managing Director and CEO Y Viswanatha God said.

The housing finance employer made a provision of Rs 830 crore for NPAs throughout the quarter.

“Now we can say with very sturdy conviction that the worst is at the back of us. Going forward, we will be on a very excellent boom trajectory,” he said.

Net activity profits (NII) grew by way of 4.5 per cent to Rs 1,275.31 crore as in opposition to Rs 1,220.61 crore in the identical duration preceding year.

Net pastime margin (NIM) stood at 2.20 per cent as towards 2.32 per cent.

Total disbursements grew 143 per cent to Rs 8,652 crore in Q1 FY2022 as in opposition to Rs 3,560 crore for the corresponding length in FY2021.

Out of this, disbursement in man or woman domestic mortgage phase used to be Rs 7,650 crore as in opposition to Rs 3,034 crore for the corresponding length in FY2021, a boom of 152 per cent.

Project loans have been at Rs 237 crore in contrast with Rs 159 crore.

The stage three publicity at default as of June 30, 2021, stood at 5.93 per cent as in opposition to 2.83 per cent as of June 30, 2020. The provisions for Expected Credit Loss (ECL) as a share of stage three publicity at default stood at 34 per cent.

“There has been an expansion in delinquencies, frequently due to financial things to do being impacted in Q1. With enchancment in monetary things to do and our improved and centred efforts in recovery, we are assured of controlling the same,” God added.

Under RBI’s Resolution Framework 1 and 2.0, the lender has restructured Rs 5,353 crore of loans in total.

Its scrip closed at Rs 415.25 apiece, up 4.11 per cent on the BSE on Thursday.

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