LIC Housing Finance stock comes under pressure on weak Q2 results

Improvement in interest income and margins crucial for investor sentiment to revive

LIC Housing Finance (LIC HF) reported weak results for the July-September quarter (Q2) of 2022-23.

The second-largest mortgage issuer saw a sharp drop in net interest margin (NIM), which led to a big sequential fall in profit after tax (PAT).

As a result, investors sold down the stock. Credit costs rose due to high write offs, which could, given LIC HF’s significant market share, give rise to wider concern. However, disbursements were better than expected. 

LIC HF reported a PAT of Rs 305 crore, which was up 23 per cent year-on-year (YoY) but down 67 per cent quarter-on-quarter (QoQ), due