LIC Housing Finance to realise Rs 100 cr from old loan account
Chennai, Nov 2 : Home mortgage lender LIC Housing Finance Limited is hoping to realise about Rs 100 crore out of a project loan that turned a non-performing asset (NPA), a top company official said here on Friday.
He also said the company is targeting a business growth of 15 per cent over last year’s figures and plans to raise about Rs 75,000-80,000 crore of funds this fiscal.
“During the first quarter we recovered Rs 50 crore from an old loan account. Another such account is expected to give about Rs 100 crore soon,” Vinay Sah, Managing Director and Chief Executive Officer told reporters.
As per National Housing Bank (NHB) norms, the Gross NPAs for the company stood at 1.20 per cent as on September 30.
Gross NPAs in individual segment was 0.81 per cent as on September 30, while the gross NPAs as on June 30 was 1.21 per cent, the company said.
Sah was here to inaugurate the 21st edition of Ungal Illam (Your Home), a property fair in which several real estate developers are showcasing their residential projects.
Queried about the recent deferring of Rs 1,500 crore non-convertible debenture (NCD) issue as the rates were high, Sah said such deferments have happened earlier owing to market conditions.
“We will go to the market when the rates are comfortable for us,” Sah said.
Sah said the company would be coming out with the NCD issue some time next month.
He said the company has passed on the rate hike four times to the borrowers this year.
According to Sah, the company has already raised about Rs 50,000 crore of funds budgeted this fiscal (Rs 75,000 crore – Rs 80,000 crore) and the balance would be raised during the course of the fiscal.
In the quarter ended September 30, 2018, total disbursements were Rs 14,272 crore as against Rs 10,975 crore for the corresponding period in the previous year, registering a growth of 30 per cent.
Out of that, disbursements in the retail loan segment were Rs 11,324 crore against Rs 10,367 crore, whereas total disbursements in project loans were Rs 2,948 crore as against Rs 608 crore for quarter ended September 30, 2017, the company had said earlier.