LIC Housing Finance has reported 58% decline in net profit and a rise of 37% in its total income for the second quarter, Business Standard reported.

The total income for the quarter-ended September stood at Rs 1,515 crore compared with Rs 1,107 crore during the same period last year. It reported a net profit of Rs 98 crore, compared to Rs 234 crore in the corresponding period last year. 

The company says the fall in net profit is notional, as the company had to make a provision of Rs 205 crore during the quarter, pursuant to the National Housing Bank’s recent directive on standard assets’ provisioning. This in addition to the regular provision of Rs 519 crore for non-performing assets.

The company’s net interest margins for the second quarter stood at 2.45% against 2.93% during the same period last year.

LIC Housing said the company disbursed loans amounting to Rs 4,736 crore in the individual loans segment, registering a growth of 24% over the second quarter of the previous year. Meanwhile, loan disbursements to developers for the quarter stood at Rs 412 crore as against Rs 1,283 crore for the same quarter of the previous year. 

The outstanding mortgage portfolio of the company in the second quarter surged 29% to Rs 56,098 crore as against Rs 43,385 crore in the year-ago period. 

Gross NPAs of the company during the reporting quarter stood at 0.64% or Rs 359 crore as against 0.74% or Rs 320 crore in the same quarter last year.

Net NPAs were 0.12% or Rs 66 crore as against 0.24% or Rs 102 crore for the corresponding period last year.

LIC Housing Finance Ltd is the largest housing finance company.  The company provides long –term finance to individuals for purchase, construction, repair and renovation of new and existing flats.