PL First Cut – LICHF Q2FY24

PL First Cut – LICHF Q2FY24 – Gaurav Jani – Research Analyst, Prabhudas Lilladher Pvt Ltd

LICHF Q2FY24-Slightly weak quarter. NII in-line, loan growth remains weak with elevated provisions

◼️NII was Rs21.1bn (PLe Rs20.7bn) driven by higher NIM as loan growth was a bit lower

◼️NIM was ahead at 3.13% (PLe 3.05%) led by lower funding cost at 7.7% (PLe 7.9%); yields were lower at 9.9% (PLe 10%)

◼️Loan growth was lower at 6% YoY (PLe 7%); disbursals were in-line at Rs146.7bn (PLe Rs146.6bn); while repayments were higher at Rs131.2bn (PLe Rs103.1bn).

◼️Individual growth was 7.1% YoY; project loans de-grew by 18.2% YoY

◼️Opex was lower at Rs2.6bn (PLe Rs2.8bn) due to lower employee and fee/commission expenses

◼️PPoP was Rs1.89bn (PLe Rs1.83bn) led by better NII/opex

◼️On asset quality; stage-2/stage-3 decreased QoQ by 67/63bps to 5.1%/4.3% probably due to write-offs.

◼️Provisions were higher at Rs4.2bn (PLe Rs4bn). PCR dipped QoQ from 42.2% to 41.2%.

◼️PAT was Rs118.8bn (PLe Rs115.6bn).

◼️Stock trades at 1x/0.9x FY25/26E ABV.