State-run LIC Housing Finance will announce its third quarter earnings today. According to CNBC-TV18 poll, analysts expect a stable set of numbers from the company with the net interest income and profit after tax growing more than 25 percent.
They expect asset quality to be stable as it improved in second quarter (gross non-performing assets fell 5 percent and net NPAs dropped 12 percent Q-o-Q), but some trepidation on developers non performing loans (NPLs) may see an increase resulting in a Q-o-Q inch up in NPLs.
Net interest margin, which was down 8 basis points sequentially to 2.22 percent in earlier quarter, may improve in the quarter ended December 2013, according to the company while analysts are mixed in opinion.
Religare expects margin to remain flat while UBS expects to move up 4 bps Q-o-Q, but Kotak Securities sees a decline of 5 basis points to 2.15 percent.
Loan growth is expected to be 20 percent Y-o-Y as against 22-23 percent in earlier quarters. The management had guided for scaling down loan growth consciously due to slowdown in real estate prices. They expect retail disbursements to be flat Q-o-Q.
Analysts expect profit after tax of the housing finance company to rise more than 30 percent to Rs 306.5 crore and net interest income to grow 29 percent year-on-year to Rs 476 crore in the quarter gone by.
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