LIC Housing Finance's (LICHF) first quarter (April-June) net
profit moderated more than 11% year-on-year to Rs 228 due to higher interest
cost, which also dented its net interest income marginally by Rs 11 crore to Rs
350. The numbers were below the market estimates. Analysts on an average had
expected net profit at Rs 282 crore and net interest income of Rs 406 crore.
“Business environment has been very challenging," V. K.
Sharma, director & chief executive LIC Housing Finance was quoted in a
company release.
"Margins have been under strain owing to the high
interest rate regime and high borrowing costs that has prevailed during the
quarter and a lower developer loan portfolio. In Q1, developer loan disbursals
have started to improve, which is likely to help increase the margins going
forward," he said.
The lender's outstanding loan portfolio stood at around Rs
65,650 crore compared with Rs 52,880 crore a year back, an expansion of 24%
y-o-y. Individual loans constituted majority of the portfolio to the tune of
95%. The housing finance industry on an average, is expecting around 18-20%
loan growth in 2012-13.
During the quarter, LICHF sanctioned Rs 4,900 crore loans to
individuals, a growth of 33% from a year back while it sanctioned around Rs 410
crore loans to builders as against Rs 5 crore in the corresponding quarter of
the previous year. The lender had virtually stopped extending credit to
developers 14 months back due to an alleged involvement of one of its senior
executives in a loan scam.
India's second largest mortgage lender disbursed nearly
4,500 crore housing loans to individuals while developers got a disbursal of Rs
320 crore.
The lender's gross non-performing ratio improved from 0.84%
to 0.71% y-o-y basis. However, net NPA ratio remains almost flat at 0.38%
suggesting that up-gradations may be less than fresh slippages.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 
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