Chennai, Feb 5 (IANS) By completing internal restructuring, migrating to a new information technology (IT) platform and focusing on the affordable housing segment, LIC Housing Finance Ltd hopes to increase the size of its loan book loans by 15 percent the next fiscal year, said one of the company’s top officials.
He also said the company is looking to reduce non-performing assets (NPAs) of Rs 2,000 crore in the project finance segment and will take a call in this line of business next fiscal.
The company did not focus on the affordable housing segment. From the next fiscal, the focus will be on the affordable housing segment, Managing Director and CEO Tribhuwan Adhikari told the media on Monday.
On the project finance portfolio, Adhikari said it had been reduced as the competition was in a rate war. LIC Housing Finance is not comfortable with the rate offered by the competition.
Apart from this, of the company’s Rs 7,500 crore project finance portfolio, Adhikari said about Rs 2,000 crore are NPAs.
He said the company is trying to recover the loan by offering a one-time settlement and through legal recourse.
Total disbursements were Rs 15,184 crore in the third quarter of FY2024, compared to Rs 16,100 crore in the corresponding period of FY2023.
Of this, disbursement in the individual home loan segment stood at Rs 12,868 crore against Rs 13,580 crore, while project loans stood at Rs 375 crore against Rs 427 crore of the same quarter of the previous year.
Asked about the internal restructuring, Adhikari said that from 24 fund offices, the company has hired 44 cluster offices for faster credit rating.
In terms of the new IT platform, he said, the way forward for customer onboarding, lending and other aspects being digitized is the way and he went there.
After initial teething problems, the system has stabilized, Adhikari added.
For the quarter ended December 31, 2023, LIC Housing has made a provision of Rs 50.32 crore towards investment in Alternative Investment Funds (AIFs) as per the Reserve Bank of India circular (RBI) dated December 19, 2023.
According to Adhikari, there needs to be some clarity on the RBI circular on AIF.
LIC Housing Finance closed the third quarter ended 31.12.2023 with an operating income of Rs 6,792.47 crore (Q3 ended 31.12.2022 Rs 5,870.84 crore) and a profit after tax of Rs 1,162, 88 crore (Rs 300 crore).