LIC Housing Finance Ltd.(LIC HFL) had reported a growth of 34% year-on-year (Y-o-Y) in its net profit of Rs 817 crore for the quarter ended in June, due to lowering provisions and steady income. In the June quarter, total provisions declined by 77.69% to Rs 56.5 crore, as compared to Rs 253 crore in the previous year period.
During the April-June quarter, Net Interest Income (NII) grew up by 3.3% to Rs 1,221 crore, which was Rs 1,182 crore in the same period a year ago. Net interest margin (NIM) stood at 2.32% in the June quarter, against 2.41% in the previous year period. Asset quality of the company had improved slightly with Gross stage 3 loans for about 2.83%, which was 2.86% in the previous quarter of the current fiscal.
The lender expects a lesser number of borrowers to opt for restructuring their loans and still evaluating broad contours by imposing barrier as the Reserve Bank of India (RBI) had passed a resolution earlier. Siddhartha Mohanty, MD and CEO of (LIC HFL) said, “The loans remained at the same level under moratorium during phase 1 at 25%. We expect loans under restructuring to be lesser than that”.
The company’s total loan portfolio had a growth of 6% at Rs 2,09,817 crore, against Rs 1,97,768 crore and, the individual loan portfolio was up at Rs 1,95,176 crore, as compared with Rs 1,84,155 crore in the previous year quarter. Home loan portfolio grew by 6.4% and, developer loan portfolio stood at Rs 14,641 crore against Rs 13,614 crore as on June 30, 2019. About 25% of total loans and individual home loan accounted for 16% remained under the moratorium as of June 30, 2020.