LIC Housing Finance reported its Q2FY22 earnings on Thursday. The mortgage lender's standalone profit after tax declined 68.66 percent to Rs 247.86 crore in the September quarter on higher provisioning for non-performing loans.
Y Viswanatha Gowd, MD and CEO at LIC Housing Finance, on Friday, said going forward, there is no need to worry much about the NPAs as the collection efficiency for regular customers for September stood at 99 percent.
“Our collection efficiency rate and the efforts taken from our teams across the recovery – I am very sure that asset quality will still be maintained very well. Already we have taken the adequate provisioning for stage-III. With that we don’t expect further improvement in NPAs in the days to come,” he said.
Net interest margins declined to 2 percent in the latest September quarter, which were in the range of 2.3-2.4 percent for several quarters. “We will regain back our earlier levels of margins,” he said.
On housing loans, he stated, “Q2FY22 was the best in the history of our company as far as the disbursements are concerned. We have almost reached pre-COVID levels with 130 percent growth in our entire disbursement.”
The mortgage lender's total disbursements rose 29 percent to Rs 16,110 crore as compared to Rs 12,443 crore in the same period the previous year.
Individual home loan disbursements stood at Rs 14,330 crore compared to Rs 10,373 crore, while project loans were at Rs 353 crore as compared to Rs 803 crore year-on-year.
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