LIC Hsng continues to fall

LIC Housing Finance is currently the top loser on the BSE, going down sharply by almost 13% to Rs.349.10; it has recouped from there and is now trading at Rs.365 levels, remaining 9% in the red. This is the fourth straight day of fall.

Though the company reported a 23% (YoY) rise in net profit at Rs.305 crore, the market is disappointed as it did not “meet expectations” or was below estimates of many brokerage houses.  Its NII was more or less flat at Rs.1163 crore v/s Rs.1173 crore,  fall of 80 bps.

Its individual loan disbursements declined marginally to Rs 14,300 crore v/s Rs.14330 crore. But this was no small change – it added 10% more to the outstanding loan portfolio, which in turn earned 8% more in revenue from operations at Rs.5086 crore. In fact its total o/s individual loans rose 15%.

Its provisions rose to Rs 6,522 crore on an expected credit loss basis and provision coverage ratio was at 44% for stage 3 accounts.

Its stage 3 exposure on default declined to 4.90% v/s 4.96% (QoQ) v/s 5.14 (YoY).

In terms of asset quality, Gross NPAs (GNPA) stood at 4.91%, down from 4.96% sequentially while Net NPAs (NNPA) was at 2.83% v/s 3.1% (QoQ).