Loan growth likely to drive further gains for LIC Housing Finance

LIC Housing Finance (LICHF) delivered a healthy FY24 with improvements in net interest margin (NIM) and credit costs and an improved return on assets of 1.7 per cent compared to an average of 1.3 per cent between FY14-FY23. Loan growth was low due to technology upgrades to the platform in H1FY24, though momentum improved in H2FY24.

In Q4FY24, the net interest income (NII) came in at Rs 2,250 crore. Yields contracted by 8 basis points sequentially, while cost of funds (CoFs) rose 6 basis points quarter on quarter (Q-o-Q), leading to spreads at 2.1 per cent (down 14