Even as LIC Housing Finance has reported a rise of 37 per cent in its total income for the second quarter of this financial year, its net profit has declined 58 per cent.
Total income for the quarter-ended September stood at Rs 1,515 crore, as against Rs 1,107 crore during the same period last year. It reported a net profit of Rs 98 crore, compared to Rs 234 crore in the corresponding period last year.
However, the fall in net profit is notional, as the company had to make a provision of Rs 205 crore during the quarter, pursuant to the National Housing Bank’s recent directive on standard assets’ provisioning. This is in addition to the regular provision of Rs 519 crore for non-performing assets.
LIC Housing Finance disbursed loans worth Rs 4,736 crore in the individual loans segment during the period, growth of 24 per cent over the year-ago period. On the other hand, loan disbursements to developers fell 65 per cent to Rs 412 crore, as against Rs 1,283 crore in the same quarter previous year.
LICHF’s director and chief executive, V K Sharma, said “The quarter has been a challenging one in terms of the overall business environment, especially in view of the successive rate increases in the system. However, despite adversities, the company has been able to post healthy growth and has been successful in delivering an improvement in asset quality.”