LIC Hous­ing Fin Aims for 18% Growth in FY17

The Economic Times - - Commodities Plus - @times­group.com

Saloni Shukla Mum­bai: Rid­ing high on the hous­ing fi­nance boom, LIC Hous­ing Fi­nance is tar­get­ing nearly18% growth in its to­tal port­fo­lio in FY17. “This year, we had growth of more than 18%. Next year, growth should be be­tween 15-18%,” Su­nita Sharma, CEO of LIC Hous­ing Fi­nance said. The com­pany re­ported a fourth quar­ter profit of .₹ 448 crore, up18.5% com­pared to last year. Sharma said the com­pany was not plan­ning to raise any cap­i­tal in FY17. “Last Oc­to­ber, RBI re­leased fresh guide­lines for risk weigh­tage, be­cause of that some re­lease of cap­i­tal has taken place,” Sharma said. “So, we are not look­ing to raise cap­i­tal in the next 12 months.”

Its pro­vi­sion­ing has also seen a steady rise with the HFC re­port­ing a to­tal pro­vi­sion­ing of .₹ 820 crore in FY16, of which .₹ 522 crore was stan­dard as­set pro­vi­sion­ing. “When there is growth in the loan book the pro­vi­sions will in­crease be­cause we have to make pro­vi­sions for stan­dard as­sets too,” Sharma said. “Pro­vi­sion is not be­cause of in­crease in NPA but be­cause the loan book is grow­ing.”

Sharma said while they re­ported fresh slip­pages of .₹ 15 crore at the end of March 2016, she was not ex­pect­ing any fresh slip­pages in the com­ing quar­ters.

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