LIC Housing Finance Q4 net profit down by 5% to Rs 398.92 crore on higher provisioning

Home loan agent LIC Housing Finance (LIC HFL) on Tuesday detailed a 5 percent decrease in its benefit after charge at Rs 398.92 crore in the quarter finished in March 2021 due to higher provisioning for terrible credits.

It had revealed a benefit after assessment of Rs 421.43 crore in the year prior period.

For FY2020-21, net benefit developed by 14% to Rs 2,734.34 crore as against Rs 2,401.84 crore in the earlier year.

“We made arrangement for every one of the misconducts in the final quarter. In this way, NPA provisioning was on the higher side which influenced the benefit during the quarter,” LIC HFL Managing Director and CEO Y Viswanatha Gowd said.

During the quarter, arrangements remained at Rs 1,000 crore, he said.

In the January-March quarter, complete distributions were at Rs 22,362 crore in Q4 FY2021, up 97% as against Rs 11,323 crore in the year-prior period.

Out of this, distributions in the individual home advance fragment at Rs 19,010 crore were up 114% from Rs 8,877 crore in Q4 FY2020. Task credits remained at Rs 1,197 crore contrasted and Rs 411 crore in Q4 FY2020.

Net interest pay (NII) rose by 33% to Rs 1,505 crore, as against Rs 1,134 crore for a similar period in the earlier year. Net interest edge for the quarter remained at 2.66 percent as against 2.17 percent in the year-prior period.

Gowd said wrongdoing levels expanded during the final quarter of FY21, for the most part emerging out of pandemic effect on corporate elements and people.

The stage 3 openness at default as on March 31, 2021, remained at 4.12 percent against 2.86 percent as on March 31, 2020.

The individual credit portfolio remained at Rs 2,16,047 crore as on March 31, 2021, as against Rs 1,96,340 crore as at the past financial end, a development of 10%.

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