LIC Housing Finance Q4 Result: Nearly 3-fold net up in low system

Mortgage financier LIC Housing Finance (LIC HFL) on Wednesday nearly tripled its after-tax profit to Rs 1,118.64 crore due to lower provisions and improved collection efficiency.

It had a net profit of Rs 398.92 crore in the same quarter of FY21.

“In the fourth quarter of last year (fiscal year 2021), we had to make a huge provision. But in subsequent quarters we made adequate provisions and FY22 did not require higher provisions in Q4. Even our collection skills have improved, which has helped in profitability, ”said Y Bishwanath Gaur, Managing Director and CEO.

PAT 2022 has declined by 16 per cent to Rs 2,287.28 crore from Rs 2,734.34 crore in FY21.

Net interest income (NII) increased by 9 per cent to Rs 1,637 crore from Rs 1,505 crore for the same period last year.

Net interest margin (NIM) for the quarter stood at 2.65 percent, up from 2.66 percent in FY 2021. Lenders expect NIM to be 2.44 percent at FY23

By March 31, 2022, the default stage 3 exposure (gross non-performing assets) stood at 4.64 percent, up from 4.12 percent as of March 31, 2021.

Gowd expects the gross NPA to fall further below 3 percent in 2023.

Expected Credit Loss (ECL) provision was Rs 5,839.10 crore as on March 31, 2022, which was Rs 3,971.42 crore as on March 31, 2021.

The personal home loan portfolio stood at Rs 204,230 crore, an increase of 13 per cent over Rs 180,665 crore as on March 31, 2021.

Housing financiers expect a 15 percent growth in the personal home loan portfolio.

The project loan portfolio was Rs 12,978 crore as on March 31, 2022, which was Rs 15,956 crore as on March 31, 2021.

The total outstanding portfolio increased by 8% to Rs 251,120 crore from Rs 232,003 crore in the previous year.

Gowd said the share of project loans in the total loan book is 5 per cent and the lender plans to double it to 10 per cent in the current financial year.

Its total project loan arrears are Rs 1,400 crore, which will increase to Rs 2,800 crore this financial year.

Shares of the company rose 0.84 per cent to Rs 358.65 on the BSE. PTI HV MR MR

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