Don't expect further pressure on yields from here on: LIC Housing

LIC Housing Finance is on radar after the company's second quarter earnings came in lower than street estimates. The net interest margins have dropped to 11 quarter low for the company. In an interview to CNBC-TV18, Vinay Sah, MD & CEO of the company discussed the details.

Sah said the two major things that contributed to lowering of yield was reduction in prime lending rate (PLR) by 20 bps and reduction in lending rates in the month of May.

On net interest margin (NIM) front, he does not expect drastic improvement in it. However, we wanted to have net interest margin of 2.7 percent for FY18.

Sah added that a major project loan became non-performing asset (NPA) in Q2 of FY18 but retail NPA has largely remained stable.

He does not expect further pressure on yields from here on.

Sah expect volume growth to aid earnings ahead.

Watch accompanying video for more details.