LIC Housing Finance to float a new financial co

Speaking to reporters after inaugurating LIC Housing Finance's 11th property exhibition "Ungal Illam" at Chennai R R Nair, director and chief executive, LICHFL said that the new company will be a 100 per cent subsidiary of LICHFL. He added, it will not not be a capital-intensive.

LICHFL Financial Services will sell financial products including home loans, mutual funds, LIC's insurance policies, credit cards and other third party products. It will distribute only LICHFL's home loans.

The new company will be based in Mumbai and Shobhana Murali who was heading LIC's corporate communication will head the new company. During the current year, it will start with 10 branches in metros and important cities and in the next two years will expand it to 65 places.

LICHFL registered a 38 per cent growth in loan disbursements in 2007-08 at Rs 7,071 crore, higher than the industry's average growth of 8-9 per cent. Total sanction was Rs 9,000 crore. Target for the 2008-09 is Rs 10,000 crore disbursement and Rs 12,000 crore sanction, said Nair.