Centrum Broking: LIC Housing Finance Q2 - Strong Business Revival; Cost Benefit Continues
A motorcyclist ride past residential apartment buildings in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Centrum Broking: LIC Housing Finance Q2 - Strong Business Revival; Cost Benefit Continues

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.

Centrum Broking Report

LIC Housing Finance Ltd.’s earnings were ahead of estimates mainly led by lower provisioning. Net Interest Income at Rs 12.3 billion and loan growth at 5% YoY were largely in-line.

Overall business saw a strong revival with disbursements surging QoQ though higher repayments is a tad concerning.

Net Interest Margin came in as expected at 2.37% and the funding cost advantage continues with LIC Housing Finance seeing a ~70-80 basis points reduction in Weighted Average Cost of Capital owing its sovereign rating.

Provisions were lower at Rs 1.0 billion and Covid related provisions stand at Rs 1.94 billion.

Click on the attachment to read the full report:

Centrum- LIC Housing Finance Q2 FY21 Result Update.pdf

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