Though RBI ‘s new norms for banks may not be par for the course for the LIC subsidiary, it is growing strongly in loan assets after having controlled its growth of Developer portfolio shares on RBI insistence. NIMs fell to a low 2.1% but the ‘bank’ remains one of our top picks in the sector at its current prices
It had a minimal share of retail exposures in its retail growth and after the current rationalisation, it will go back to getting to the richer Developer portfolios as it boosts its Net interest income to INR 3.54B and is likely to post INR 16.54 B for the full year
Provisioning has dropped 5 out of 6 to just under INR 7 B keeping profits high at INR 2.47 B Business Standard reports its best growth of 36% in the loan portfolio came in June / September 2010 hence it has been falling.
As we mentioned it tried to balance its portfolio from 50% developer to more retail with RBI egging it on.
This quarter the Loan portfolio is a sizable INR 690 B at 21% yoy growth and may easily reach INR 1 Trillion by Q1 2015 esp as it may be able to absorb more crorporate exposure ( Developers) Loan growth of above 20% at this size of assset portfolio underlines the growing capabilities of this
This is the third copy of the posterous blog i am posting as the now twitter company seems to have lost some of its softare contstructs losing my drafts and published documents ever so often