New Delhi: LIC Housing Finance, the mortgage arm of insurance coverage behemoth LIC, is anticipating a web revenue of Rs 5,000 crore within the present monetary yr on the again of strong mortgage demand and growth in non-core business.
The non-core business contains Loan Against Property (LAP) and reasonably priced housing finance, LIC Housing Finance managing director and CEO Tribhuwan Adhikari instructed PTI in an interplay.
During 2022-23, the largest housing finance firm earned a web revenue of Rs 2,891 crore. (Also learn: Zomato’s Hilarious Response To Customer Goes Viral; Netizens Applaud Creativity)
“Affordable housing segment remained strong in tier-2 and tier-3 markets. We remained focused on this segment, as it gives an opportunity to millions of aspiring Indians to own their home with a moderate budget,” he stated. (Also Read: From Teen Bride To Billion-Dollar CEO: The Inspirational Journey Of Jyothi Reddy)
In addition to business development, he stated, “our endeavour has been to improve service standards through ongoing digital transformation of our processes.” Fourth quarter is normally a very powerful business interval for the corporate and going by the present traits, he stated, “we expect to close this financial year with healthy numbers.”
He stated the corporate has earned a web revenue of Rs 3,675 crore within the three quarters and hopes to the touch Rs 5,000 crore by the top of this monetary yr. Net Interest Margin (NIM) for the quarter ended December 31, 2023 was 3 per cent as in opposition to 2.41 per cent on December 31, 2022.
However, he introduced a barely conservative outlook of two.6-2.8 per cent NIM in the course of the fiscal ending March 2024 as a consequence of excessive price of funds. Cost of funds are elevated as a consequence of excessive rate of interest.
Asked about capital requirement to finance business development, Adhikari stated, there is no such thing as a instant requirement of funds as Capital Adequacy Ratio is shut to twenty per cent. CAR of LIC Housing Finance rose to 19.77 per cent on the finish of December 2023 as in comparison with 17.74 per cent on the finish of third quarter of earlier monetary yr.
Source: zeenews.india.com
