LIC Housing Finance posted 58 per cent decline in net profit at Rs 98 crore for the second quarter ended September 30,on account of higher provisioning.
The mortgage company had posted a net profit of Rs 234 crore in the year-ago period.
“The quarter has been a challenging one in terms of overall business environment,especially in view of successive rate hikes in the system.
“However,despite the adversities,the company has been able to post healthy growth and also been successful in delivering an improvement in asset quality,” LIC Housing Finance Director and CEO V K Sharma said in a statement.
The company attributed the decline in net profit to an additional provision of Rs 205 crore related to provisions on standard assets it made during the quarter as per a directive issued by National Housing Bank (NHB).
However,total income of the company during the second quarter grew 37 per cent to Rs 1515 crore as compared to Rs 1107 crore in the corresponding period of the previous year.
Besides,net interest margins for the second quarter stood at 2.45 per cent against 2.93 per cent during the same period last year primarily due to increase in interest rates.
The company disbursed loans amounting to Rs 4,736 crore in the individual loans segment,registering a growth of 24 per cent over the second quarter of the previous year.
Loan disbursements to developers for the quarter stood at Rs 412 crore as against Rs 1283 crore for the same quarter of the previous year.
The outstanding mortgage portfolio of the company in the second quarter grew 29 per cent to Rs 56,098 crore as against Rs 43,385 crore in the year-ago period.
Meanwhile,gross NPAs of the company during the reporting quarter stood at 0.64 per cent,or Rs 359 crore,as against 0.74 per cent,or Rs 320 crore,in the same quarter last year.
Net NPAs were 0.12 per cent or Rs 66 crore as against 0.24 per cent or Rs 102 crore for the corresponding period last year.
Shares of the company ended down by 0.67 per cent at Rs 230.30 on the BSE on Friday.