LIC Housing Finance Ltd will be completing its proposed Qualified Institutional Placement (QIP) to raise up to Rs 1,200 crore before the end of March, according to its Director and Chief Executive V. K. Sharma
Speaking to newspersons after inaugurating a two-day property exhibition here on Saturday, Sharma said the QIP got delayed due to a variety of reasons including market volatility.
“We are also ready to apply for External Commercial Borrowings to mobilise up to Rs 700 crore to Rs 1,000 crore,” he said.
Expand credit
Though there was no immediate requirement for capital, these measures would help to expand ‘affordable credit’ to people, he said.
LIC HFL, which is now charging 10.25 per cent interest on home loans, would wait till the Reserve Bank of India’s policy review slated for January 29 before revising interest rates.
The demand for residential home loans was picking up and there was no stress on the asset quality, he added.
“However, in project finance, there is some stress but our exposure now is only about Rs 3,500 crore,” he said.
The company, which is ranked next only to State Bank of India and HDFC in the home loans segment, has about 10 per cent share in the market.
Last year, it disbursed Rs 20,000 crore loans and is targeting Rs 25,000 crore this year.