LIC Hsg Fin drops

LIC Housing Finance is currently the top loser on the BSE, opening over 6% lower at Rs.413, going down to hit an intraday low at Rs.405.10. Its 10% LC of the day stands at Rs.396.35.

The stock price slumped on the back of its disappointing performance for Q2FY22. Its net profit fell 69% (YoY) to Rs.248 crore. This fall has been attributed to increase in provisions on account of implementation of resolution plans, especially in the case of corporate entities. Provisions went up by Rs.424 crore during the quarter in respect of 113 corporate entities. It had an exposure aggregating Rs.4,629 crore to them before implementation of the resolution plans.

NII fell 5% (YoY) to Rs.1173 crore and NIMs came down from 2.20% to 2% (QoQ).