LIC Housing

Improvement in interest income and margins crucial for investor sentiment to revive

Net interest income and margin both decline; disbursements up 4% to Rs 16,786 crore

Says hike is in line with market scenario; rates are still very competitive and demand for home loans is to likely to sustain

The strong demand in real estate -- residential, commercial, and logistics -- is giving confidence to the likes of JM Finance, Piramal, LIC Housing, and Indiabulls Housing Finance

LIC Housing Finance's (LIC HFC) net profit rose 6 per cent year-on-year (YoY) to Rs 767.33 crore in the third quarter.

India Post Payments Bank (IPPB) has joined hands with LIC Housing Finance for selling housing finance products of the latter to its 4.5 crore customers, a statement said on Tuesday.

Mortgage financier LIC Housing Finance on Friday said it has reduced its interest rates to 6.66 per cent for home loans up to Rs 50 lakh.

Lender's capitalisation may restrict growth and it's asset quality could be worse if a Supreme Court order is disregarded.

Collection efficiency for non-moratorium customers for the month of September 2020 stood at 96%

The proposal will be taken up at its annual general meeting on September 28 for approval from shareholders

Policyholders are requested to stay indoors and avoid visiting any office to pay premium. They can, however, use online services of LIC

Both public sector non-bank lenders are aligning their loan book favourably towards retail home loans without losing sight on profitability

The sharp increase in gross NPAs reflect stress in its loan against property business.

While strong parent support and transformation of loan book to floating rate is positive, asset quality concern is key

Valuations attractive but Street to keep eye on slippages

Things have lately not been in favour of LIC Housing given that the stock has lost momentum after it peaked at Rs 794 in August with the decline accentuating post its September quarter (Q2) results declared on October 30. Now trading at Rs 601, LIC Housing has corrected 24 per cent since its peak and is among the underperformers in the recent times. The question is, how much pain really entail for investors and whether the selling seen in the counter is overdone?Operationally, Q2 was disappointing on most fronts, except that it managed to curb its loan loss provisioning after June quarter's heavy spike. Net interest income, the difference between interest earned and interest expended, grew at a crawling pace of 2.5 per cent year-on-year even despite a 15.5 per cent increase in its loan book. The unsettling factor is the dip in profitability or net interest margin (NIM) from 2.7 per cent a year ago to 2.4 per cent in Q2. While even historically LIC Housing hasn't earned the NIMs ...

Net profit from 2016-17 rose 16 per cent to Rs 1,931 crore from Rs 1,660 crore in 2015-16

Consumer business moderated, but net interest margin strong on lower cost of funds, changing loan-mix