LIC Housing Finance Ltd (LICHFL) plans to raise funds through green bonds in the next financial year with the aim of financing environmentally sustainable housing projects.
Tribhuwan Adhikari, managing director and chief executive officer of LIC Housing Finance, informed, “Green finance is something we will consider next year and we will be putting the funds towards financing green housing projects.'' P.T.I..
Insurance major LIC's home loan arm will hold a board meeting on March 7 to consider borrowing plans for FY 2024-2025 through loans and issuance of redeemable non-convertible debentures, zero coupon debentures, subordinated debentures and Tier II debentures. , is scheduled to be approved. or any other means approved by a regulatory authority.
Please also read: LIC Housing Fin provides affordable home loans to banks for credit expansion and interest margins.
profit target
LICHFL wants to achieve a net profit. INR5 billion milestone by the end of this financial year on the back of strong loan demand and expansion of non-core businesses, Adhikari said, according to a PTI report.
He added that non-core businesses include real estate financing (LAP) and affordable housing finance.
“The affordable housing segment continued to perform well in Tier 2 and Tier 3 markets. ,” Adhikari was quoted as saying. P.T.I.. “Our effort has been to improve service standards through continuous digital transformation of our processes.”
“We expect to end the financial year with healthy numbers,” the chief executive added.
In the financial year 2022-23, LICHFL had reported a net profit. INR289.1 billion. Net interest margin (NIM) for the third quarter ended December 2023 was 3% compared to 2.41% recorded in December 2022.
Adhikari said in February that LICHFL aims to more than double the share of affordable housing loans in its loan book to 20-25% in the next two years.
He said the housing finance company's loan growth slowed to 5% in the December quarter due to internal restructuring and management changes.
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