LIC Housing Finance's net profit dips 68% in Q2 FY22

LIC Housing Finance’s net profit dips 68% in Q2 FY22

NEW DELHI: LIC Housing Finance (LIC HFL) has reported a 68 per cent decline in its net consolidated profit during the quarter ended September 2021, the company said in a BSE filing.
Its profit after tax (PAT) stood at Rs 249.86 crore in Q2 FY22 as against Rs 789.67 crore it recorded in the corresponding quarter previous fiscal. The company’s net consolidated total income stood at Rs 4,722.93 crore in Q2 FY22, a dip of 5 per cent from Rs 4,987.64 crore it registered in the similar quarter last year. The company has completed the preferential allotment to LIC of India and has issued 4,54,00,000 equity shares at a price of Rs 514.43 per share on September 8, 2021.

As per Reserve Bank of India (RBI) notification dated March 13, 2020, housing finance companies are required to create in reserve for any shortfall in impairment allowances. The impairment allowance made by the company is lower than the total provision under IRAC at September 30,2021 and accordingly
Rs 92.71 crore are transferred to impairement reserve, the company said in the regulatory filing. In compliance with Regulations 52 of the Securities and Exchange Board of India
(SEBI), the company made following disclosure for half-year ended September 30, 2021: its debt equity ratio stood at 9.58, net worth was Rs 21,865.75 crore, total
debts to total assets stood at 0.87, operating margin was 5.24%, gross nonperforming asset (GNPA) was 5.14% and net non-performing asset (NPA) was 2.98%.
There were 248 borrowers accounts having an aggregate exposure of Rs 179.68 crore to the company, where resolution plans had been implemented under OTR
1.0 and now modified under RBI’s resolution framework 2.0 dated May 5, 2021.