LIC Housing Finance, a subsidiary of the Life Insurance Corporation of India (LIC), on Sunday reported a 58 per cent dip in its net profit at Rs 98 crore for the quarter ended September 2011 on the back of higher provisions for NPAs (non-performing assets) as mandated by the sector regulator, the National Housing Bank. Net profit of the housing finance company stood at Rs 234 crore during the same period last fiscal.

“The quarter has been a challenging one in terms of overall business environment, especially in view of successive rate hikes in the system. However, despite adversities, the company has been able to post healthy growth and also has been successful in delivering an improvement in asset quality,” Director and Chief Executive of LIC Housing Finance, Mr V. K. Sharma, told newspersons here. Total income of the company increased by 37 per cent to Rs 1,515 crore during this period.

LIC Housing Finance made a regular provision of Rs 519 crore for the NPAs besides an additional provision of Rs 205 crore during the September quarter as required under new norms set by the NHB, Mr Sharma said.

During the second quarter, the company disbursed loans worth Rs 4,736 crore in the individual loan segment, up by 24 per cent over the same period last year.

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