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LIC Housing Finance posted a more than two-fold increase in second quarter net profit at Rs 243.05 crore against Rs 98.39 crore last year.
The company earned higher interest income on housing loans and made lower provisions in the quarter.
The Mumbai-based lender earned an interest income of Rs 1,808 crore, which is 24 per cent more than that of the year-ago period.
Total provisions dropped to about Rs 7 crore from Rs 204.69 crore a year earlier. This is primarily because of an absence of a one-time provision that it made in the last fiscal to meet the regulatory requirements.
“During the financial year 2011-12, the company had aligned its provisioning policy on standard/NPA accounts to match the revised NHB norms,” the home finance firm said in a statement.
The company earned higher interest income on housing loans and made lower provisions in the quarter.
The Mumbai-based lender earned an interest income of Rs 1,808 crore, which is 24 per cent more than that of the year-ago period.
Total provisions dropped to about Rs 7 crore from Rs 204.69 crore a year earlier. This is primarily because of an absence of a one-time provision that it made in the last fiscal to meet the regulatory requirements.
“During the financial year 2011-12, the company had aligned its provisioning policy on standard/NPA accounts to match the revised NHB norms,” the home finance firm said in a statement.
DISBURSEMENTS UP
The company said that its individual loan disbursements rose 21 per cent to Rs 5,716 crore.
“It is encouraging to note that there is a 10 per cent increase in number of customers, which is a very good sign. Also, the incremental costs of funds are showing some trends of easing,” V. K. Sharma, Chief Executive, said.
LIC Housing Finance’s larger peer, HDFC, posted an 18 per cent jump in net profit last week because of growth in retail loans. It’s smaller peer Dewan Housing Finance Corp (DHFL) posted a 19 per cent increase in net profit on the back of rising loan disbursements.
Shares of the company closed at Rs 242.95, up 0.27 per cent on the Bombay Stock Exchange.
satyanarayan.iyer@thehindu.co.in
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