BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
LIC Housing Finance Ltd.’s developer book stage-III at 24% plus which has remained higher in double digits since nine quarters in a row, stage-II exposure at 20% and overall stress at 54% (including restructured: Rs 47 billion) is baffling.
Moreover, despite 91% salaried customer focus, retail home loan stage-III at 2.6% is equally disappointing.
LIC Housing Finance's Q1 FY22 earnings were further marred by higher sequential interest costs (up 5% QoQ albeit decline in cost of fund), one-off employee costs (Rs 1.2 billion) and elevated provisioning (143 basis points credit costs).
While second wave restricted loan book expansion (0.2% QoQ), we reckon trajectory should only remain tepid for FY22 in light of surmounting asset quality challenges.
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