LIC Housing Finance (LICHF) on Wednesday reported a sharp
rise in its second quarter net profit by 147% year-on-year to Rs 243 crore in
2012-13, on the back of lower provisions against bad loans. Net interest income
or the different between interests earned and paid out, increased 6% y-o-y to
Rs 354 crore.
The housing finance company however, had made a provision of
Rs 205 crore in the corresponding quarter of the previous to meet regulatory
norms. Consequently, the level of provisions dropped to Rs 7 crore during
July-September, FY13 in absence of such one-off item. This added to the net
profit margin.
"During the financial year 2011-12, the company had
aligned its provisioning policy on Standard / NPA accounts to match with
revised NHB norms and based thereupon made provision from the quarter ended
December 31, 2011. Had the policy followed for the quarter ended September 30,
2011 been continued, the profit before tax for Q2, FY13 would have been lower
by around Rs 122 crore," LICHF said in a press statement.
The quarterly numbers fell short of meeting the market
expectations. An average of analysts' poll estimated net profit at 245 crore,
up 150% while NII up by 11%.
The company disbursed Rs 5,716 crore loans in individual
segment while loans disbursement to developers stood at Rs 121 crore. The total
outstanding mortgage loan book expanded 23% y-o-y to around Rs 69,100 crore.
During the quarter, the gross non-performing asset (NPA)
ratio improved to 0.60% as against 0.64% a year back. Net NPA ratio however
rose to 0.28% from 0.12% in Q2, FY12. This was due to fall in provisions. Net
NPAs are determined after deducting provisions for bad loans from gross NPAs.
Higher the provisions leads to lower net NPAs and vice versa.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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