LIC Housing Finance to aggressively use OTS, ARC for loan recoveries

The company had written off Rs 544.71 crore during FY23, in comparison to just Rs 23.03 crore written off in the previous year

LIC Housing Finance, the largest home finance company, will aggressively use One-Time Settlement Scheme (OTS) and sale to asset reconstruction companies (ARCs) for the recovery of stressed loans, T. Adhikari, the company’s newly-appointed chief executive officer (CEO) managing director (MD) said.

Till date, LIC Housing Finance has been using normal channels, including the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, to convince borrowers to repay, Adhikari said in the analysts call while announcing the results of the first quarter of the financial year 2023-24 (Q1FY24) on Friday.

Typically, follow-up starts immediately on the