Earlier on Monday, August 27th, Shares of LIC Housing Finance(NSE -7.66 %) noticed nearly a 7 per cent decline in trade following the announcement made by the housing finance(NSE 0.30 %) company in which it reported less-than-expected June quarter results.
The stock price fell by 7.08 per cent which resulted in it hitting a low of Rs 531 on BSE.
The company reported an 18.4 per cent rise in its standalone net profit at Rs 567.94 crore, for the quarter, which is higher than the Rs 479.65 crore profit in the same quarter for the previous year.
However, Brokerage Kotak Securities went on to say that LIC’s business trends in June quarter were weak.
A statement given by Kotak securities states, “LIC Housing’s NIM compressed 17 bps to 2.37 per cent, that lead to a 8 per cent growth in NII. It reported a 11 per cent YoY(year-on-year) growth in PBT before provisions most of which is due to the 15 per cent loan growth (13 per cent in retail loans).”
Kotak Securities further added, “A decline in provisions, regardless of a substantial rise in stage 3 loans led to 18 per cent PAT growth.”