Lic Housing Finance To Raise Rs 20,000 Cr In Fy11
LIC Housing Finance, the housing finance arm of the insurance giant LIC
, today said it will raise Rs 20,000 crore during the current fiscal to fund its business growth.
"Last year we had raised Rs 17,000 crore. This year we plan to mop up Rs 20,000 crore from the domestic market," its chief executive RR Nair said here today. The money would be raised through various instruments like non-convertible debentures, commercial papers, etc he said.
During the first quarter, the company aims to garner Rs 6,000 crore from the market, Nair said, adding the company has headroom of Rs 600 core under tier II.
Speaking about the business, Nair said, the company had disbursed loan worth Rs 15,000 crore last fiscal, registering a growth of 70 per cent. "This year we are expecting
loan disbursal to be around Rs 20,000 crore," he said.
Capital adequacy ratio of the company stood at 15 per cent with net bad loan of 0.12 per cent and the gross non-performing assets of 0.69 per cent at the end of 2009-10, Nair said, adding with a CAR of 15 per cent it can grow the assets by a whopping 40 per cent for the next two years.
On the business diversification, Nair said, "we are awaiting guidelines from RBI for banking. If we are eligible we will go for it. I think there is no reason why we should not be eligible because we have got 21 years of work experience in the financial services, Rs 3,400 crore networth along with more than 200 offices across the country," he said.
The Reserve Bank is expected to come out with a discussion paper on new norms for granting new banking licences to private sector companies and non-banking financial companies by July-end.
Finance minister Pranab Mukherjee had announced in the budget 2011 that the government is open to allowing more private entities and NBFCs into the banking sector.
"The RBI is considering giving some additional banking licenses to private sector players. Non-banking financial companies could also be considered, if they meet the eligibility criteria," the Mukherjee had said.
LIC Housing Finance is a subsidiary of LIC which has 36.5 per cent stake and 32 per cent is with foreign institutional investors.
by: Dealfor Loans
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