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Motilal Oswal: LIC Housing Finance - PPoP Beat And Lower Credit Costs Lead To PAT Beat  

Motilal Oswal: LIC Housing Finance - PPoP Beat And Lower Credit Costs Lead To PAT Beat

An unfinished property development in Noida, Uttar Pradesh, India. (Photographer: Prashanth Vishwanathan/Bloomberg)
An unfinished property development in Noida, Uttar Pradesh, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

LIC Housing Finance Ltd. reported 34% YoY growth in Q1 FY21 profit after tax to Rs 8.2 billion (60% beat). The beat was driven by better-than-expected net interest income as well as lower credit costs.

The overall moratorium rate remained stable at 25% as of June (similar rates in July and August as well).

In retail home loans, the moratorium rate was 16%, marginally higher than its largest peer HDFC Ltd. In loan against property plus builder, the moratorium rate stood at over 50%. This is a key monitorable for us.

Click on the attachment to read the full report:

Motilal Oswal LIC Housing Finance Q1FY21 Result Update.pdf

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