Commenting on LIC HF's exposure in stalled projects, he said, "We have taken data on the exposure to stalled projects, and it will be less than Rs 1,200 crore. We are in talks with developers and expect that this will help us reduce NPAs. But it will take time, as project completion isn't an easy task." It will definitely improve the market and is aimed to instill confidence in the minds of home buyers, he added.
The Union Cabinet in the first week of this month approved the setting up of the AIF
to revive around 1,600 stalled housing projects across top cities. The AIF
will be a special window to provide priority debt financing for completion of projects in the affordable and middle-income categories, Finance Minister Nirmala Sitharaman said after the Cabinet meeting.
Mohanty said the housing sector, especially the affordable segment, is showing signs of growth and the company expects to disburse around Rs 55,000 crore this year as against Rs 48,000 crore last year. It has alread disbursed Rs 25,000 crore so far. Most of the growth this year is expected to come from affordable housing and commercial loans against property (LAP). The Pradhan Mantri Awas Yojana accounts for 26 per cent of the portfolio in the current year, while commercial LAP and the developer book make up seven per cent of the overall disbursement.
The company, while raising funds from the domestic market, is also looking at external commercial borrowing (ECBs). The quantum will be decided by its committee based on need, but the company has kept that option open, Mohanty said.
The south accounts for around 19 per cent of LIC HF's loan book. During the year ended March 31, 2019, the region disbursed around Rs 7,342 crore.