LIC Housing Finance Q2 PAT may rise 37% at Rs 333cr: MOST
According to Motilal Oswal, net interest income of LIC Housing Finance is expected to increase by 1.3 percent Q-o-Q (up 30.3 percent Y-o-Y) to Rs 460.7 crore.
October 29, 2013 / 16:25 IST
Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the NBFC sector. The brokerage house expects LIC Housing Finance to report a 7.1 percent growth Q-o-Q (up 36.8 percent Y-o-Y) in net profit at Rs 332.6 crore.
Net interest income of the company expected to increase by 1.3 percent Q-o-Q (up 30.3 percent Y-o-Y) to Rs 460.7 crore, according to Motilal Oswal.Motilal Oswal's Report on LIC Housing Finance (LICHF):LICHF's loan growth is likely to remain healthy at 22 percent Y-o-Y on the back of buoyant demand in the individual loans segment.Individual loans segment is likely to grow by 23 percent Y-o-Y and 6 percent Q-o-Q, while the developer segment is expected to grow by 4 percent Q-o-Q. Share of builder loan is likely to fall below 3 percent of overall book.We expect margins to expand by 15bp Y-o-Y (re-pricing of the teaser rate loans), which would provide cushion to margins.Asset quality is likely to remain stable. We model provisioning reversal of INR 200 million (v/s provisioning of INR 171 million in 1QFY14); the reversal would be on account of provisioning release for teaser loans.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
