Mumbai: LIC Housing Finance, India’s second-largest mortgage finance company, said its quarterly earnings fell 81% as it set aside hundreds of crores of rupees in buffer against defaults by borrowers. signaling a skewed economic recovery.
Net profit fell to Rs 153 crore in the June quarter, from Rs 817 crore a year earlier largely as provisions for bad loans increased close to 15 times to Rs 830 crore from Rs 56 crore last year.
Provisions were, however, lower than the Rs 977 crore reported in March 2021.
Loans due for more than 90 days increased to 5.93% of total advances from 4.12% in March, and 2.83% last year.
Higher employee costs also hit profit. Employee benefit expenses rose one-and-a-half times to Rs 215 crore from Rs 80 crore in June 2020. Total income also declined marginally to Rs 4,859 crore from Rs 4,978 crore last year.