GIC Housing Finance Limited , a prominent player in India's housing finance sector, has announced a change to its board composition. The company's shareholders have approved the appointment of Shri Dinesh Waghela (DIN 08072065) as an Independent Director through a postal ballot process.

Shareholder Approval and Appointment Process

The e-voting process for this appointment concluded on October 30. Following the completion of the voting, GIC Housing Finance informed the BSE Limited about the board appointment on October 31, in compliance with regulatory disclosure requirements.

Implications for Corporate Governance

The addition of Shri Dinesh Waghela to the board as an Independent Director is a move that could enhance the company's corporate governance structure. Independent directors play a crucial role in providing unbiased perspectives and ensuring that the interests of all stakeholders are considered in board decisions.

Company Background

GIC Housing Finance Limited, promoted by General Insurance Corporation of India (GIC-Re) and its erstwhile subsidiaries, has been operating in the housing finance sector for over three decades. As of June 30, the company reported:

The company's focus remains on providing housing loans, particularly to salaried customers, with individual home loans accounting for 91% of its portfolio as of June 30.

This appointment comes at a time when the company is working on improving its asset quality and expanding its operations beyond its traditional stronghold in Maharashtra.

GIC Housing Finance Limited (GICHFL) has reported a net profit of ₹735.00 lakh for the first quarter of fiscal year 2026, despite a significant increase in provisions. The company's financial results for the quarter ended June 30, 2025, reveal both challenges and strategic adjustments in its operations.

Financial Performance

GICHFL's total income for Q1 FY2026 stood at ₹26,543.00 lakh, compared to ₹27,718.00 lakh in the same quarter of the previous year. The company's interest income slightly increased to ₹26,239.00 lakh from ₹25,772.00 lakh year-over-year.

Increased Provisions Impact Profitability

A notable aspect of the quarter's performance was the substantial increase in impairment of financial instruments, including write-offs. This figure jumped to ₹7,797.00 lakh in Q1 FY2026 from ₹2,384.00 lakh in Q1 FY2025. The company attributed this increase to a modification in its Expected Credit Loss (ECL) calculation method, resulting in an additional provision of ₹5,416.00 lakh.

Asset Quality and Reclassification

GICHFL's gross Stage 3 assets ratio increased to 4.74% as of June 30, 2025, compared to 3.03% at the end of the previous quarter. This rise was partly due to the reclassification of repossessed properties from "Assets Held for Sale" to "Loans at amortized cost." Consequently, assets amounting to ₹16,889.00 lakh were included in Loans at amortized cost, leading to a one-time increase in ECL provisioning of ₹2,731.00 lakh during the quarter.

Balance Sheet Strength

Despite the increased provisions, GICHFL maintained a strong balance sheet. The company's net worth stood at ₹1,97,193.00 lakh as of June 30, 2025, up from ₹1,96,441.00 lakh at the end of the previous quarter. The debt-to-equity ratio improved slightly to 4.40 times from 4.44 times over the same period.

Liquidity Position

The company's liquidity position remains robust. As per the structural liquidity statement, GICHFL maintained positive cumulative mismatches across various time buckets, indicating its ability to meet short-term obligations comfortably.

Management Commentary

Sachindra Salvi, Managing Director & CEO of GIC Housing Finance, stated, "While the increased provisions have impacted our quarterly profits, these measures strengthen our balance sheet and position us better for future growth. Our focus remains on maintaining asset quality while pursuing prudent expansion opportunities."

Future Outlook

Despite the challenges posed by increased provisions, GICHFL's management remains optimistic about the company's prospects. The company continues to focus on its core business of providing loans for purchase or construction of residential houses, with an emphasis on maintaining asset quality and exploring growth opportunities in the housing finance sector.

Investors and stakeholders will be keenly watching how GICHFL navigates the current financial landscape and whether the increased provisioning translates into improved asset quality in the coming quarters.