LIC Housing Finance Q4 Review - Best Ever Disbursals; Asset Quality May Improve: Centrum Broking

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Centrum Broking Report

LIC Housing Finance Ltd.'s earnings were strong on pre provision operating profit though provisions were higher.

Disbursals at Rs 224 billion were best ever, growing by 97% YoY.

FY21 loan growth was driven by individual housing (up 12% YoY) which was a positive.

Momentum in loan accretion may sustain in FY22 and we see a loan compound annual growth rate of 12% over FY21-23E.

Asset quality saw a YoY blip with gross non performing asset/provisions rising over FY20-21 from 2.8%/46 basis points to 4.1%/60 basis points.

Restructured pool stood at ~1.5% of loans and 1% more could be added in FY22.

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