 "Housing")
A contraction of 48 basis points (bps) year-on-year (y-o-y) in net interest margin (NIM: a difference between interest earned and expanded as per cent of advances) of LIC Housing Finance during the March 2018 quarter (Q4) disappointed investors. NIMs were down largely due to lower yields on loans, induced by stiff competition.
The fall would have been higher but for the 84 per cent y-o-y rise in project/developer loan disbursements, where yields are typically 300 bps higher than individual/retail loans. The surge in developer loans, however, helped overall disbursements grow 14.5 per cent in Q4, offsetting the slower growth of 8.4
