Mumbai, July 29: Outflows against securitised papers caused LIC Housing Finance — the second largest housing finance company in India after HDFC —to report a marginal rise in net profit to Rs 34 crore for the quarter ended June 30, ‘03 from Rs 33.6 crore in the corresponding period of the previous year. The outflow was to the extent of Rs 9.6 crore during the quarter. This was a result of invocation of corporate undertaking (which is put in place towards seeking a credit enhancement for securitised paper), to adjust the difference in the amount payable to holders of pass through certificates (PTCs) in the previous quarter.
“Had this invocation for prior payment not taken place, there would have been a 18-19% growth in profits,” said SC Jain, managing director of LIC Housing Finance. The net profit has been arrived at after providing for a deferred tax asset of Rs 2.1 crore during this quarter.

Gross income rose 4.7% to Rs 230 crore, as against Rs 219.6 crore in the previous year. During the quarter, the amount sanctioned was Rs 944.8 crore, while disbursements were Rs 921.2 crore. The outstanding mortgage portfolio was Rs 8,358.3 crore as on June 30.
Income from operations grew marginally by 2.3% to Rs 223.9 crore from Rs 219 crore in the previous year.
Other Income grew sharply to Rs 6.1 crore as against Rs 16 lakh in the previous year. Bureau Report