LIC Housing Finance, country’s second largest housing finance company (HFC) is planning to raise Rs 1,150 crore through a QIP issue. It hopes to complete the fund raising exercise in next two months.
"We have already finalized the merchant bankers and depending upon market conditions we should be able to seal the issue in next one-two months” said V K Sharma, chief executive of LIC housing Finance told reporters here.
The issue will further boost company’s capital adequacy ratio (CAR), he added. It will declare its second quarter results on 31 October.
Also company feels that the demand housing loans is still robust.
Even sector regulator National Housing Bank (NHB) echoed the same view. It expects housing loans to grow at 20% this fiscal against 17% growth last year.
"Going forward we do not rule out further price wars amongst banks themselves and the housing finance companies also," NHB chairman RV Verma said
The banks have about 68% share in the home loan market and rest is with HFCs, Verma added.
Banks this year are giving increase thrust to retail lending as corporate book is almost nil apart from few sporadic demand. Most public sector banks are offering the home loans at base rate. Country’s largest lender State Bank of India which also has largest home loan portfolio about Rs 1.10 lakh crore.
SBI offers the home loans up to Rs 30 lakh at 10% and loans above Rs 30 lakh at 10.15%.
NHB also doesn’t plan to increase capital adequacy ratio (CAR) for the HFCs which is currently at 12%.
