LIC Housing Finance Q4 Review - Asset Quality Vulnerability An Overhang: Prabhudas Lilladher
People play cricket near a Godrej Properties Ltd. residential housing complex in the Chembur suburb of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

LIC Housing Finance Q4 Review - Asset Quality Vulnerability An Overhang: Prabhudas Lilladher

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 Q4 FY21 profit after tax was marred by elevated provisioning (spiked nine times QoQ) and stood below estimates.

Growth (disbursements 33% and loans 5% QoQ) and net interest margin (up 30 basis points QoQ to 2.66%) acceleration were negated by higher credit costs (0.43% versus 0.08%: Q3 FY21) and sharp non performing asset deterioration (133 basis points spike QoQ to 4% plus).

While FY21 growth buoyancy was aided by macro tailwinds, sustainability is the key.

Also, asset quality vulnerability remains stark with perceivable stress pool standing at ~13% (Stage II+III, restructured stock).

Click on the attachment to read the full report:

Prabhudas Lilladher LIC Housing Finance Q4FY21 Result Update.pdf

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