InvestorQ : How do you see the latest results of LIC Housing Finance for the Jun-20 quarter?
indhumathi Sayani made post

How do you see the latest results of LIC Housing Finance for the Jun-20 quarter?

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4 months ago
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LIC Housing Finance reported 34% growth in net profits at Rs.817 crore for the Jun-20 quarter on the back of lower provisioning for doubtful debts. LIC Housing confirmed that most of the required provisions were already made in the previous quarter itself.

Consequently, the Jun-20 quarter provisioning fell to Rs.56 crore from Rs.253 crore in the year-ago period. LIC also saw total income up marginally by 3% at Rs.4977 crore. Net interest income or NII stood at Rs.1221 crore slightly higher than the previous quarter.

For the quarter, the NIM was marginally down by 9 bps at 2.32%. The immediately challenge is that 25% of the company's loan book is currently under moratorium but the bigger challenge is that nearly 77% of its developer loan book is under moratorium.

Despite a tough quarter, the total loan portfolio grew 6% at Rs.209,817 crore. While the developer loan portfolios is having some stress, the good news is that it only accounts for about 6% of the total loan book with balance in individual loans.

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