LIC HF: Loans against property prop up show

However, margins may not sustain amid rising competition and stable bond yields

LIC Housing Finance (HF) reported a good set of results for the December quarter (Q3). Continued traction in its individual loans fuelled healthy loan growth of 15 per cent for the company. LIC HF's loan growth was similar to that in recent quarters. However, the devil lies in the details. LIC HF's loans against property or LAPs (10.4 per cent of loan portfolio) grew sharply on a sequential as well year-on-year basis even as individual loan growth remained a minor fraction of LAP growth. The company clubs these two loan portfolios while reporting numbers and, hence, was able to mask