LIC Housing Fin eyes banking foray | business | Hindustan Times
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LIC Housing Fin eyes banking foray

business Updated: Sep 29, 2010 22:50 IST
Sachin Kumar

Housing mortgage lender LIC Housing Finance (LICHF) is targeting a growth of 40 per cent in loan disbursement in the current fiscal, and may seek a banking licence, a senior executive said on Wednesday.

The company, which is seeking to enter the banking sector, aims to disburse R20,000 crore in the current fiscal. It had lent about R15,000 crore last year.

“We are targeting R20,000 crore in disbursements — that will be around 40 per cent growth over last year,” said R.R. Nair, director and chief executive, LICHF.

Nair said the company’s venture capital fund is slated to become operational next month. “(With) the R500-crore fund… we will participate in real estate projects,” he said.

On banking operations, Nair said LICHF is waiting for Reserve Bank of India’s guidelines on banking licences. “We will take the final call after the guidelines are out,” he said.

The company’s outstanding mortgage portfolio as on June 30, 2010 was R40,030 crore as against R29,254 crore as on June 30, 2009 — a growth of 37 per cent. Individual housing loans comprised 90 per cent of the outstanding mortgage portfolio.

Net Profit for the quarter ended June 2010 was R212 crore, a rise of 71 per cent.