LIC Housing Finance, subsidiary of the Life Insurance Corporation of India (LIC), has reported results for the quarter ended September 30, 2011.
The Company’s net profit after tax for the quarter has declined by 57.99% at Rs 98.39 crore as compared to Rs 234.21 crore for the September quarter of the previous Fiscal. Its total income has increased by 36.83% at Rs 1515.37 crore for the Q2FY12 from Rs 1107.45 crore for Q2FY11.
The company reported 58% dip in its net profit for the quarter ended September 2011 on the back of higher provisions for NPAs as mandated by the sector regulator, the National Housing Bank. The sector regulator for housing finance companies recently raised the bar for provisioning requirements in case of doubtful assets to 100% from previous 50%. The NHB also asked the housing finance companies to set aside 0.4% of the total outstanding 'standard' loan as a 'buffer'. The quarter has also been a challenging one in terms of overall business environment, especially in view of successive rate hikes in the system
Company Name | CMP |
---|---|
LIC Housing Finance | 585.00 |
Housing & Urban Dev. | 239.80 |
Bajaj Housing Financ | 126.50 |
Sammaan Capital | 151.00 |
PNB Housing Finance | 854.20 |
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