Housing finance company LIC Housing Finance today reported a marginal 7 per cent growth in net profit at Rs 407.84 crore in the quarter ended June due to higher provisioning.
The company had reported a net profit of Rs 382.13 crore in the same period last year.
"The profit was muted as there was extra provisioning of Rs 92 crore on account of aging of old project loan NPAs, which had already been classified as NPAs as per norms," the company's managing director and CEO Sunita Sharma said after the announcement of the result.
There was also Rs 20 crore worth of arrears paid to employees on account of wage revision.
Gross non performing assets was at 0.59 per cent while net NPA stood at 0.28 per cent.
Net interest margins improved to 2.61 per cent from 2.41 per cent in the same period last year.
Total income was Rs 3,380 crore as against Rs 2,965 crore during the same period previous year.
It disbursed Rs 7,064 crore in the individual loan segment, while in project loan segment disbursement was Rs 478 crore.
The outstanding mortgage portfolio as on June 30 was Rs 1,27,437 crore as against Rs 1,10,411 crore last year.
The individual loan portfolio stood at Rs 1,23,681 crore as against Rs 1,07,704 crore.
Developer loan portfolio stood at Rs 3,756 crore as against Rs 2,708 crore.
Angel Broking senior equity research analysts, Siddharth Purohit said, "LIC Housing has reported a good set of numbers for the quarter. While the reported PAT grew by only 7 per cent, NII growth was strengthen up by 25 per cent. The company took additional provisioning to the tune of Rs 90 crore due to aging of some NPAs in the project loans and hence provisions remained higher at Rs 116.5 crore vs Rs 44.3 crore on year."
The company's scrip ended at Rs 525.05, up 3.65 per cent on BSE.
