Mumbai: Provisioning for bad loans may have taken a toll on the profit after tax of mortgage financier LIC Housing Finance.
LIC Housing Finance reportedly incurred Rs 1,000 crores towards provisioning of bad loans for quarter ending March 2021 even as profits were recorded at Rs 398.92 crores. The lender reported net profit at Rs 421.43 crores for the March 2020 quarter.
In the March quarter, loan disbursals grew by 97 percent at Rs 22,362 crores. A year ago, LIC Housing Finance disbursed Rs 11,323 crores.
CEO Viswanatha Gowd is reported as saying in an agency report, "We made provision for all the delinquencies in the fourth quarter. So, NPA provisioning was on the higher side which affected the profit during the quarter."
For the fiscal year, net profit is up by 14 percent to Rs 2,734.34 crore as against Rs 2,401.84 crore in the previous year.
Gowd said delinquency levels increased during the fourth quarter of FY21, mostly arising out of pandemic impact on corporate entities and individuals.
On Tuesday, the LIC Housing Finance board recommended a dividend of Rs 8.50 per equity share of Rs 2 each. The dividend on equity sares will be paid on or after the date of AGM said the company.
Shares of LIC Housing Finance ended at Rs 521.75 on Tuesday.