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LIC Housing Finance reports increase in net profit after tax at Rs 610.68 crore
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LIC Housing Finance reports increase in net profit after tax at Rs 610.68 crore

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Kolkata, Aug4: LIC Housing Finance on Saturday reported an 8 per cent increase in net profit after tax at Rs 610.68 crore in the first quarter (Q1FY20) against Rs 567.94 crore in the year-ago period.

Profit before Tax for the quarter was Rs. 840.89 cr as against Rs. 788.40 cr for the same period in the previous year, registering a growth of 7 per cent.

The Board of Directors of LIC Housing Finance announced its un-audited results for the first quarter ended on June 30, 2019 following its approval by the Board of Directors in a meeting held in Mumbai on August 3.

The company's total income for quarter ended June 30, 2019 was Rs 4807 cr as against Rs. 4059 cr during the same period previous year, marking a growth of 18 per cent.

Revenue from operations grew 19 per cent from Rs. 4005 cr to Rs.4757 cr. Net Interest Income was Rs 1154 cr, as against Rs 980 cr for the same period in the previous year, registering a growth of 18 per cent.

The total loan portfolio stood at Rs 197768 cr as against Rs 169866 cr a growth of 16 per cent. The Individual loan portfolio stood at Rs 184155 cr as against Rs 161467cr, showcasing a growth of 14 per cent. Out of that home loan portfolio registered a growth of 12.4 per cent.Developer loan portfolio stood at Rs 13614 cr as on June 30, 2019 as against Rs 8399 cr as on June 30, 2018.

Net Interest margins for Q1 ended June 30, 2019 stood at 2.35 per cent as against 2.32 per cent during the same period previous year. In the quarter ended June 30, 2019, total disbursements were Rs 10261 cr as against Rs 9594 cr for the corresponding period in the previous year registering a growth of 7 per cent. Out of that, disbursements in the individual home loan segment was Rs 7871 cr against Rs 7260 cr, whereas total disbursements in project loans were Rs 829 cr as
against Rs 889 cr for quarter ended June 30, 2018.

Under Indian Accounting Standards norms, asset classification and provisioning amount changes from the rule- based model to the Expected Credit Loss (ECL) model of providing for expected future credit losses based on Exposure at Default (EAD). The loan loss provisions are computed based on the Company’s loss rates experienced in the past and future expected credit loss after accounting in various parameters.

As per the same methodology, the EAD-Stage 3 stood at 1.98 per cent as against 1.54 per cent as on 31st March, 2019.

Consequently, the provisions for ECL stood at Rs 253.33cr for the quarter as against Rs 160.96 cr for the corresponding quarter in the previous year. Speaking on the performance, Siddhartha Mohanty, MD & CEO, LIC Housing Finance said,“The business environment continued to be quite challenging. However, despite that, the Company’s outstanding loan book grew consistently, especially on the home loan
segment.

The company has also performed quite well in the affordable segment. The company is strongly focusing on asset quality and on recovery aspect and we are confident of addressing the situation in current year.” “The budget this year proposes additional Rs 1.5 lac deduction for interest on home loans, which will certainly trigger a strong demand from end-users in the affordable category. Renewed emphasis on PMAY (Urban) is also encouraging. In the current financial year, we expect stabilisation of the financial sector. I feel the sector will not only recover from the earlier stress, but also see opportunities for substantial growth in future,” Mohanty added.(UNI)