The other income surged 74% to Rs 47.92 crore. The net total income moved up 4% to Rs 1328.94 crore.

Operating expenses jumped 25% to Rs 165.72 crore, allowing the operating profit to rise mere 1% to Rs 1163.22 crore.

However, the provisions dipped to Rs 180.95 crore in Q3FY2021 from Rs 390.68 crore in Q3FY2020. Depreciation also fell 1% to Rs 12.94 core from Rs 3.18 core. Thus, PBT jumped 30% to Rs 826.72 crore. An effective tax rate galloped to 25.02% in Q3FY2021 from 19.83% in Q3FY2020. The net profit increased 22% to Rs 727.04 crore in Q3FY2021.

Business updates

In the quarter ended December 2020, total disbursements surged 28% to Rs 16857 crore from Rs 13177 crore in Q3FY2020. Out of that, disbursements in the individual home loan segment zoomed 36% to Rs 14511 crore, whereas disbursements in project loans declined 8% to Rs 852 crore and other retail loans by 6% to Rs 1494 crore in Q3FY2021.

The total loan portfolio rose at improved pace of 6% to Rs 220197 crore as against Rs 194646 crore. The Individual loan portfolio stood at Rs 204444 crore as against Rs 194004 crore, registering a growth of 5%.

Developer loan portfolio rose 10% to Rs 15753 crore end December 2020 as against Rs 14266 crore end December 2019.

The Loan Mix is - retail loans - 77.0%, developers loans - 7.2% and retail LAP/LRD/etc - 15.8% end December 2020.

Net Interest margin was at 2.36% in Q3FY2021 as against 2.34% in Q2FY20201 and 2.42% in Q3FY2020. The weighted average cost of funds eased to 7.25% in Q3FY2021 from 7.61% a quarter ago and 8.22% a year ago. The weighted yield on advances also declined to 9.51% in Q3FY2021 from 9.82% a quarter ago, while eased from 10.25% a year ago.

The gross stage 3 (GNPA) exposure at default eased to 2.68% end December 2020 from 2.79% a quarter ago, while increased from 1.49% a year ago.

The company has also scaled up provisions to Rs 2948.05 crore end December 2020 from Rs 2771.74 crore a quarter ago and Rs 2584.72 crore a year ago.

Book value of the company stood at Rs 406.70 per share and adjusted book value (net of net stage 3 assets) stood at Rs 348.18 per share end December 2020.

Financial Performance 9MFY2021

LIC Housing Finance reported 18% rise in the net profit to Rs 2335.42 crore in the nine months ended December 2020 (9MFY2021). Net interest income (NII) of the company rose 1% to Rs 3739.6 crore in 9MFY2021. The other income moved up 11% to Rs 84.01 crore. The net total income rose 2% to Rs 3823.61 crore.

Operating expenses jumped 25% to Rs 449.44 crore, causing 1% dip in the operating profit to Rs 3374.17 crore. However, the provisions dipped to Rs 340.42 crore in 9MFY2021 from Rs 925.48 crore in 9MFY2020. Depreciation rose 6% to Rs 12.94 core from Rs 3.18 core. PBT moved up 23% to Rs 826.72 crore. An effective tax rate rose to 22.06% in 9MFY2021 from 18.91% in 9MFY2020. The net profit improved 18% to Rs 2335.42 crore in 9MFY2021.