DHFL & LIC Housing surge post strong Q3 numbers

Housing finance majors Dewan Housing Finance and LIC Housing surged in trade post reporting strong Q3 results, allaying all the fears of the investors post the demonetisation move by the government.

DHFL posted a strong Q3 earnings with hardly any impact in terms of asset quality. On the other hand, the company saw disbursements rising in Q3 by 10 per cent. Loans sanctioned during the quarter also increased two per cent for the quarter ending December 31.

The govenrment-owned LIC Housing Finance also posted a fairly decent set of quarterly results, with loan growth of 15 per cent in third quarter of FY17. Disbursements were up 15 per cent in Q3. Net interest margin was 2.75 per cent, as against 2.68 per cent Q-O-Q and the asset quality remained good as NPA for the quarter remained at 0.27 as against 0.28 Q-O-Q.

The positive results from two large housing finance companies suggest that there was no negative impact of demonetisation on their businesses.

The stocks of both DHFL & LIC Housing closed at the high point of the day at Rs 287.35, up 6.5 per cent, and Rs 541.85, up 1.45 per cent, respectively.