Lic Housing In Securitisation Deal
The National Housing Bank (NHB) has recently entered into a securitisation deal with LIC Housing Finance Ltd (LICHF) for Rs 25 crore which is a part of a larger securitisation programme for Rs 100 crore. The remaining amount has been securitised with three other parties, they being the Housing Development Finance Corporation (HDFC), CanFin Homes and Dewan Housing respectively.
Disclosing this at the annual general meeting of LIC Housing Finance Ltd, G Krishnamurthy, chairman of the company said that LIC Finance also plans to go in for new funding routes such as raising subordinate debt during the current financial year.
The company also plans to make a foray into property advisory services, which will be set up as a separate division. "We are in the process of formulating certain schemes and policies which will be offered as value-added services to those who approach us for a housing loan," he said. "This could include setting up a panel of lawyers, engineers and architects who will give advisory services," he added.
Commenting on the interest rate scenario, he said, "we have to move with the market. We will wait and watch and take decisions accordingly."
According to the interest rate structure with effect from June 8, loans up to Rs 25,000 will carry an interest rate of 12 per cent, those above 25,000 and below Rs 2 lakh at 14 per cent rate, loans above Rs two lakh and up to Rs 5 lakh will bear the rate of 14.5 per cent while those above Rs 5 lakh upto Rs 50 lakh will be charged 15.5 per cent.
The company has posted a net profit of Rs 11.49 crore (Rs 9.14 crore in the corresponding period last year) for the first quarter this fiscal registering a growth of 25.71 per cent. Incomes grew by 16.13 per cent to Rs 117.28 crore. The company had sanctioned Rs 243.69 crore during this period and disbursals at Rs 216.02 crore showed a 22.9 per cent growth.
The company has set a target of sanctioning 40,000 individual loans for Rs 955 crore and disbursals of 37,000 loans for Rs 880 crore during 1998-99.