LIC Housing's margins soften but not dismal yet

After strong March quarter, net interest margin at 2.5% not perceived positively by Street

The three per cent net interest margin (NIM) posted by LIC Housing Finance in the March quarter perhaps tempted analysts to believe the trend could continue. But, for a home financier whose mainstay is to lend to retail customers, mainly the salaried class, it could be foolhardy to believe so even in a falling interest rate regime. This is why the Street was caught on the wrong foot with respect to LIC Housing. The question is whether the 2.5 per cent NIM in the June quarter (Q1) is really dismal considering the lending rates scenario and whether it justifies the