LIC Housing Finance Q4 Review - Best Ever Disbursals; Asset Quality May Improve: Centrum Broking
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Centrum Broking Report
LIC Housing Finance Ltd.'s earnings were strong on pre provision operating profit though provisions were higher.
Disbursals at Rs 224 billion were best ever, growing by 97% YoY.
FY21 loan growth was driven by individual housing (up 12% YoY) which was a positive.
Momentum in loan accretion may sustain in FY22 and we see a loan compound annual growth rate of 12% over FY21-23E.
Asset quality saw a YoY blip with gross non performing asset/provisions rising over FY20-21 from 2.8%/46 basis points to 4.1%/60 basis points.
Restructured pool stood at ~1.5% of loans and 1% more could be added in FY22.
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