LIC Housing Finance recorded a profit of Rs.539.32 crore after profit for the fourth quarter of FY 2017-18. The growth recorded in the previous quarter of the fiscal was Rs.529.19 crore, marking an increase of 2% in the following quarter. The reason for the subdued growth was identified as rising stress in loans to developers.
The gross NPAs (Non-performing assets) including those on loans to developers was recorded at 0.78% at the end of FY 2017-18. The figure recorded at the end of the fourth quarter of the previous fiscal was 0.43%.
The net non-performing assets increased slightly to 0.43% in the final quarter of FY 2017-18, which was a marginal growth in comparison with the 0.14% recorded in the last quarter of FY 2016-17.
The net write-off/provision declined by nearly 68.5% to Rs.28.13 crore in the last quarter of FY 2017-18. In the final quarter of FY 2016-17, the net provisions/write-off was recorded at Rs.89.29, aiding the company in increasing its profitability.
Over the course of the last quarter of FY 2017-18, the overall disbursements witnessed a YoY (year-on-year) growth of 15% to Rs.17,402 crores. The home loan segment alone contributed to 17% YoY growth, thereby increasing the total number of disbursements over the quarter.
In comparison with the fourth quarter of FY 2016-17 when the revenue from operations was recorded at Rs.3,643, that figure increased to Rs.3,900 in the last quarter of FY 2017-18.
A poll conducted by Reuters forecast the net income for the last quarter of FY 2017-18 at Rs.520.8 crore. The CEO of LIC Housing Finance, Vinay Sah, said that both asset quality as well as margins improved this year, and that the company remains confident that all operational areas will improve further in FY 2018-19.
The net interest margin recorded in the last quarter of FY 2017-18 was 2.49% – a marginal increase in comparison with the 2.33% recorded in the third quarter of the year, but a slight decline from the 2.97% recorded in the last quarter of FY 2016-17.
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