LIC Housing Finance Ltd., is planning to raise ₹55,000 crore in the current financial year to meet its growth plans, said a top official.
“We are planning to raise need-based funds of ₹55,000 crore mostly through non-convertible debentures,” said Vinay Sah, MD and CEO, LICHFL. “By August-end, we had raised ₹17,000 crore.”
Mr. Sah was in Chennai to inaugurate the 20th edition of ‘Ungal Illam’, a three-day property fair, in which more than 75 builders are taking part. Till date, LICHFL had posted 15% growth across segments. While sanctions grew 21%-22%, disbursements grew 18% to ₹15,000 crore. Gross non-performing assets stood at 0.4%.
On the impact of the Goods and Services Tax and the Real Estate (Regulation and Development) Act on purchases, he said: “Some prospective buyers preferred to wait and watch. There is some slowdown in demand. Purchases for investments purposes are going down. But, demand for purchases meant for self occupation is going up.”
“People are waiting to see the prices of housing units to drop following RERA. But the prices are neither going up nor down,” he said.
On the affordable housing segment, LICHFL had concluded 4,000 deals up to August 2017, against 4,400 units for 2016-17. The average loan size in this segment was ₹8 lakh to ₹10 lakh, he said.
