CLSA on LIC Hsg ; O-P, TP Rs 620

Reported 2QFY27 NII in-line, while negative credit costs, driven by recoveries from written-off accounts, helped drive a 15% PAT beat. NIM was stable QoQ, and LICHF increased its prime lending rate by 25bps, which should aid margins, even as incremental lending yields remain c.70bps below overall yields. While disbursement growth has picked up over last three quarters, loan growth, at 4%-5%, remains tepid. Management is increasingly focusing on higher-yielding segments such as loans against property (LAP) amid high competition from banks in the prime housing segment

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