LIC Housing Finance saw improved traction in individual business during the quarter while operating performance was steady. NII for LICHF saw flattish growth of 2.2% YoY at Rs 1281 cr, mainly on account of 6 bps YoY decline in margins to 2.36%. Recent management commentary indicated that margins benefited from lower funding cost which was down by 36 bps in Q3 FY21 and 83 bps in current fiscal, as the liquidity environment remained favourable for the company. Other income jumped 73% YoY to Rs 48 cr aiding topline. Cost-to-income sequentially was steady at 13.4% vs. 13.2%. Provisions declined YoY by 54% to Rs 181 cr but QoQ were up 75%. Total provisions for Covid related and a standstill account is to the tune of Rs 400 cr. PAT for the quarter was up 22% YoY to Rs 727 cr.
Asset quality manageable; buffer relatively lower: