LIC Housing Finance Q2 Review - Re-Rating Still Distant: Prabhudas Lilladher
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Prabhudas Lilladher Report
LIC Housing Finance Ltd.'s Q2 FY22 earnings stood mixed.
While low base led to both business (interest income falling 3% quarter-on-quarter, loans up 2.2% quarter-on-quarter) and asset quality improvement quarter-on-quarter (stage 3 lower by 79 basis points quarter-on-quarter to 5.14%), the elevated interest reversals on OTR accounts (Rs 2.5 billion) and one-time operating costs (actuarial impact Rs 450 million) proved as a dampener.
While individual Home loan NPAs at 2.2% stood down 4 basis points quarter-on-quarter, developer NPAs at ~24% stood stagnant with negligible resolutions during the quarter.
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