LIC Hous­ing Fi­nances ex­pands its busi­ness in East In­dia

Accommodation Times - - Housing Finance -

LIC Hous­ing Fi­nance Ltd., the mort­gage fi­nance arm of Life In­sur­ance Cor­po­ra­tion of In­dia, has set a loan dis­burse­ment tar­get of Rs 3,000 crore in 2014-15 for the eastern re­gion against Rs 1,902 crore last fis­cal, a growth of 58 per cent.

The growth in loan dis­bur­sal for the re­gion was around 26 per cent last year, while loans sanc­tioned grew 22 per cent. In In­dia, the lender’s out­stand­ing mort­gage port­fo­lio in­creased 17 per cent to Rs 91,341 crore.

“We are see­ing an in­creased de­mand for loan for hous­ing prop­er­ties in tier II and III cities in the eastern re­gion such as Silig­uri, Guwa­hati and Dur­ga­pur. The ticket size is in the range of Rs 15-20 lakh,” Arup Das­gupta, re­gional man­ager of LIC Hous­ing Fi­nance told.

He added that a com­bi­na­tion of a low in­ter­est rate start­ing from 10.1 per cent and a large net­work of 30 of­fices in Ben­gal, Bi­har, Odisha, Jhark­hand, Sikkim and the North­east would con­trib­ute to the growth in dis­burse­ment.

Among the banks, the State Bank of In­dia and ICICI Bank are charg­ing sim­i­lar in­ter­est rates in the mort­gage fi­nance seg­ment. The com­pany had low­ered its in­ter­est rates by 0.25 per cent in Oc­to­ber last year.

“We are also in­creas­ing our dis­tri­bu­tion chan­nel. We are set­ting up two of­fices in the re­gion at Bur­d­wan and Dana­pur in Patna to in­crease the to­tal num­ber of of­fices in the re­gion to 32,” Das­gupta said.

LIC Hous­ing Fi­nance posted a 29 per cent growth in net profit at Rs 1,317.19 crore in 2013-14. Gross non-per­form­ing as­sets in­creased to 0.39 per cent last fi­nan­cial year over 0.36 per cent a year ago. The Rs 70,000-crore gen­eral in­sur­ance in­dus­try has de­manded tax ex­emp­tion in the up­com­ing bud­get to give a boost to cor­po­rate health plans of SME (small and medium en­ter­prises) em­ploy­ees and re­tail catas­tro­phe cover.

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