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LIC Housing Finance Q4 results: Net up nearly 3-fold on lower provisioning


Mortgage financier LIC Housing Finance (LIC HFL) on Wednesday reported a nearly threefold jump in its profit after tax to Rs 1,118.64 crore on lower provisions and improvement in collection efficiencies.

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

“In Q4 of last year (fiscal 2021), we had to make a huge provision. But in the subsequent quarters we made adequate provisioning and so higher provisioning was not required during Q4 FY22. Even our collection efficiency improved, which helped in the profitability,” its Managing Director and CEO Y Viswanatha Gowd said.

PAT declined 16 per cent to Rs 2,287.28 crore in fiscal 2022 as against Rs 2,734.34 crore in FY21.

Net Interest Income (NII) rose by 9 per cent to Rs 1,637 crore as against Rs 1,505 crore for the same period of the previous year.

Net Interest Margin (NIM) for the quarter stood at 2.65 per cent as against 2.66 per cent for Q4 FY 2021. The lender expects NIM to be at 2.44 per cent in FY23.

The stage 3 exposure at default (gross non-performing asset) as of March 31, 2022, stood at 4.64 per cent against 4.12 per cent as of March 31, 2021.

Gowd expects gross NPA to further decline to below 3 per cent in the fiscal 2023.

The provisions for expected credit loss (ECL) stood at Rs 5,839.10 crore as on March 31, 2022, as against Rs 3,971.42 crore as on March 31, 2021.

Individual home loan portfolio stood at Rs 204,230 crore as against Rs 180,665 crore as on March 31, 2021, up by 13 per cent.

The housing financier expects a growth of 15 per cent in the individual home loan portfolio.

The project loan portfolio stood at Rs 12,978 crore as on March 31, 2022, as against Rs 15,956 crore as on March 31, 2021.

The total outstanding portfolio grew at 8 per cent to Rs 251,120 crore from Rs 232,003 crore in the earlier 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 fiscal.

Its total project loan outstanding is Rs 1,400 crore, which will rise to Rs 2,800 crore this fiscal.

Shares of the company ended at Rs 358.65 apiece, up 0.84 per cent, on BSE. PTI HV MR MR

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