LIC HFL net profit dips 58%

LIC Housing Finance  (LIC HFL) reported a deep decline of 58 % in its net profit at Rs 98 crore for the second quarter ended September 30, 2011. LIC HFL had posted a net profit of Rs 234 crore in the corresponding period last year. 

The fall in the net profit is, however notional as the company had to make a provision of Rs 205 crore during the quarter, pursuant to the NHB's ( National Housing Bank) recent directive related to provisions on standard assets. This is in addition to the regular provision of Rs 519 crore for NPA (Non-Performing Assets).
Sametime, the company's total income grew 37% to Rs 1,515 crore for the September quarter from Rs 1,107 crore.

LIC HFL disbursed loans of Rs 4,736 crore in the individual loans segment during September quarter, registering a growth about  25%..
Mr. V. K. Sharma, Director and Chief Executive, LIC Housing Finance  said: "The September  quarter has been a challenging one in terms of overall business environment, especially in view of successive loan interest rate hikes"

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