LIC Housing Finance Ltd (LIC HFL) has said that the company is expecting a 15 per cent growth rate during this fiscal. The company is expected to raise around Rs 55,000 crore this year through non-convertible debunture (NCD), said Vinay Sah, Managing Director and CEO, LIC HFL.
Speaking to the reporters after inaugurating its property fair "Ungal Illam" (Your Home) in Chennai, said that the company is looking at a growth of 15 per cent in business during this fiscal. The retail business is clocking in better growth, which will back the expected growth rate, he added.
LIC HFL's loan disbursement has been growing at a compound annual growth rate (CAGR) of 14 per cent. It has recorded a disbursement of Rs 41,541 crore, a growth of 15 per cent over the previous year during the year ended March 31, 2017. The income grew at a CAGR of 16 per cent and registering a profit after tax of Rs 1,931 crore for the last fiscal.
In the current market situation, purchase of homes for investment is in a decline while the purchase for own use continue to take place. Implementation of Real Estate (Regulation and Development) Act, has impacted the market as customers are waiting for price correction, which has not happened so far.
The company has seen a 17 per cent year-on-year growth in disbursements during the first quarter of FY18. The loan book grew at 15 per cent and stood at Rs 1,47,051 crore. It has a network of around 9000 marketing intermediaries to provide service to the home aspirants.
The southern region, comprising the states of Tamil Nadu, Puducherry and Kerala, holds around 22 per cent of the loan book of the Company having serviced around 300,000 lakh customers since inception, added the company.