Operating Expenses dipped 45% to Rs 127.54 crore, allowing the operating profit to surge 37% to Rs 1149.70 crore. However, the provisions zoomed 215% to 281.47 crore and depreciation jumped 314% to Rs 12.17 crore, reducing the growth at PBT level to 15% at Rs 856.06 crore. An effective tax rate dipped to 9.8% in Q2FY2020 from 23.1% in Q2FY2019, pushing up net profit by 35% to Rs 772.20 crore in Q2FY2020.

Business updates

In the quarter ended September 2019, total disbursements declined 15% to Rs 12173 crore from Rs 14294 crore in Q2FY2019. Out of that, disbursements in the individual home loan segment rose 4% to Rs 11728 crore against Rs 11324 crore, whereas disbursements in project loans dipped 85% to Rs 445 crore as against Rs 2970 crore in Q2FY2019.

The total loan portfolio rose at slower pace of 14% to Rs 203036 crore as against Rs 177393 crore. The Individual loan portfolio stood at Rs 189351 crore as against Rs 166457 crore, showcasing a growth of 14%. Out of that home loan portfolio registered a growth of 13%. Developer loan portfolio stood at Rs 13685 crore end September 2019 as against Rs 10936 crore end September 2018.

Net Interest margins stood at 2.42% in Q2FY2020 as against 2.41% in Q2FY2019.

Under IndAS 16, asset classification and provisioning changes for future credit loss are reported on Expected Credit Loss (ECL) basis. As per the same methodology, the provisions for ECL stood at Rs 2194.04 crore end September 2019 as against Rs 1559.48 crore end September 2018. The Stage 3 Exposure at Default increased to 2.38% end September 2019 from 1.98% end June 2019 and 1.27% end September 2018.

Book value of the company stood at Rs 340.4 per share and adjusted book value (net of net stage 3 assets) stood at Rs 285.9 per share end September 2019.

Performance for H1FY2020

LIC Housing Finance reported 18% growth in net interest income to Rs 2433.57 crore for H1FY2020. Other income increased 5% to Rs 48.28 crore, while the total income increased 18% to Rs 2481.85 crore. Operating Expense declined 27% to Rs 227.71 crore. The growth in OP thus was at 26% to Rs 2254.14 crore. After providing deprecation of Rs 22.39 crore and provisions of Rs 534.80 crore, PBT was up by 11% to Rs 1696.95 crore. After providing total tax of Rs 314.07 crore, PAT increased 21% to Rs 1382.88 crore in H1FY2020.