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