LIC Housing Finances expands its business in East India
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.