Well-rated corporates with strong parentage like LICHF would be able to borrow at much lower rates than peers, in these times of tight liquidity. Also, balance transfer out of LICHFs book will reduce drastically, going forward. We expect 12-13% CAGR in the loan book over FY18-21, driven by a pick-up in the core home loan growth and slowdown in LAP/developer loan growth. LIC Housing Finance Core home loan rate now starts at 8.8% (non-annualized) while that for LAP/developer is ~200bp higher. Given that >80% of the loan book is now at floating On the other hand, our analysis (click reveals that, given the liability structure, overall cost of funds for LICHF will rise only ~40bp cumulatively over FY18-20E. In addition, the company has been rated AAA by CRISIL since 2002. With its strong parentage and AAA-credit rating since 2002, we believe LICHF will be much better placed than peers in such times of tight liquidity. In addition, balance transfer pressure could ease as peers are facing liquidity pressure.