LIC Housing Finance’s net interest margin (NIM) for the quarter stood at 2.32 per cent.
LIC Housing Finance shares surged as much as 11.45 per cent, the most in a day since May 26, to hit an intraday high of Rs 308 a day after it reported its June quarter earnings. The country’s leading non-banking finance company after market hours on Monday reported that its net profit in June quarter rose 34 per cent to Rs 817 crore despite disruptions caused by Covid-19 induced disruptions. LIC Housing Finance had earned a profit of Rs 611 crore in the same quarter last year. The company’s net interest income or the difference between interest earned and interest expended came in at Rs 1,221 crore as against Rs 1,182 rore, LIC Housing Finance said in a press release.
Net interest margin (NIM) for the quarter stood at 2.32 per cent as against 2.41 per cent for the same period in the previous year.
“Due to the nation-wide lockdown, there was significant impact on business during the quarter. However, with the gradual opening up of the economy, business activities started improving, especially since June 2020,” LIC Housing Finance said in a press release.
“For the month of June, the retail disbursements were approximately 62 per cent of the corresponding figure of the previous year. Total disbursements were Rs 3,560 crore in Q1 FY2021 as against Rs 10,261 crore for the corresponding period in FY2020. Out of this, disbursement in Individual Home Loan segment were Rs 3,034 crore as against Rs 7,871 crore, for the corresponding period in FY2020 whereas Project loans were Rs 159 crore compared with Rs 829 crore for the same quarter in previous year,” LIC Housing Finance added.
The total loan portfolio stood at Rs 2,09,817 crore as against Rs 1,97,768 crore, a growth of 6 per cent. The Individual loan portfolio stood at Rs 1,95,176 crore as against Rs 1,84,155 crore, showcasing a growth of 6 per cent, LIC Housing Finance said in a statement.
Individual home loans under moratorium accounted for 16 per cent of the home loans portfolio as on June 30, 2020. Approximately 25 per cent of the company’s total loans under management is in moratorium as of June 30, 2020.
Siddhartha Mohanty, MD & CEO, LIC Housing Finance Ltd said: “The quarter under review coincided with the nation-wide lockdown which had impacted our business operations. However, progressively with unlocking of activities, our business picked up, especially from the month of June, 2020. Though the economic activities are likely to take some more time to recover, we are witnessing an increasing business trend month after month, and we are confident of a rebound in Q2 itself. During the phase of lockdown, we have launched several products and other initiatives which will support our business strategies in the new normal. We are closely monitoring all accounts which are in moratorium and ensuring that they smoothly transit to a regular payment mode.”
As of 12:02 pm, LIC Housing Finance shares traded 8.44 per cent higher at Rs 300, outperforming the Sensex which was 0.2 per cent.
