LIC Housing Finance to boost loan business project in FY2023
25 May 2022
2 Min Read
CW Team
With the real estate cycle improving, LIC Housing Finance plans to boost project finance lending and increase the percentage of such disbursements from 5% to 10% in the fiscal year (FY) 2022-23.
Project loan activities were not fully operational in the first half of FY 2021-22. In the second part of FY22, the firm was also affected by the Covid-19 third wave. The business environment is now clear.
Existing projects may be subject to a cash withdrawal. A pipeline of projects worth over Rs 1,000 crore is also being evaluated.
Project loan disbursements fell to Rs 428 crore in the reporting period ending March 31, 2022, from Rs 1,197 crore in the fourth quarter of (Q4FY) 2020-21.
On March 31, 2022, the project credit portfolio was Rs 12,978 crore, down from Rs 15,956 crore on March 31, 2021.
Its overall disbursements in Q4FY22 were Rs 19,315 crore, compared to Rs 22,362 crore in the same quarter of FY21. Furthermore, disbursements in the individual house loan category totalled Rs 16,341 crore in Q4FY21, compared to Rs 19,010 crore in the previous quarter.
According to Y Viswanatha Gowd, managing director and chief executive officer, LIC Housing Finance, this year will be significantly better. Despite the prospect of rising interest rates, the country's economic outlook is significantly brighter than it was in FY21 and FY22.
In FY23, a 15% increase in disbursements is expected. From Rs 2.32 trillion a year earlier, the total outstanding portfolio increased by 8% to Rs 2.51 trillion by March 2022 end.
Individual home loan portfolios increased by 13% to Rs 2.04 trillion as of March 31, 2021, from Rs 1.8 trillion.
The shift in the real estate cycle has improved the environment for resolving projects with execution and cash flow issues. It was able to recover Rs 350 crore in non-performing assets (NPAs) in the builder and high-value loan segments in the fourth quarter.
With the real estate cycle improving, LIC Housing Finance plans to boost project finance lending and increase the percentage of such disbursements from 5% to 10% in the fiscal year (FY) 2022-23.
Project loan activities were not fully operational in the first half of FY 2021-22. In the second part of FY22, the firm was also affected by the Covid-19 third wave. The business environment is now clear.
Existing projects may be subject to a cash withdrawal. A pipeline of projects worth over Rs 1,000 crore is also being evaluated.
Project loan disbursements fell to Rs 428 crore in the reporting period ending March 31, 2022, from Rs 1,197 crore in the fourth quarter of (Q4FY) 2020-21.
On March 31, 2022, the project credit portfolio was Rs 12,978 crore, down from Rs 15,956 crore on March 31, 2021.
Its overall disbursements in Q4FY22 were Rs 19,315 crore, compared to Rs 22,362 crore in the same quarter of FY21. Furthermore, disbursements in the individual house loan category totalled Rs 16,341 crore in Q4FY21, compared to Rs 19,010 crore in the previous quarter.
According to Y Viswanatha Gowd, managing director and chief executive officer, LIC Housing Finance, this year will be significantly better. Despite the prospect of rising interest rates, the country's economic outlook is significantly brighter than it was in FY21 and FY22.
In FY23, a 15% increase in disbursements is expected. From Rs 2.32 trillion a year earlier, the total outstanding portfolio increased by 8% to Rs 2.51 trillion by March 2022 end.
Individual home loan portfolios increased by 13% to Rs 2.04 trillion as of March 31, 2021, from Rs 1.8 trillion.
The shift in the real estate cycle has improved the environment for resolving projects with execution and cash flow issues. It was able to recover Rs 350 crore in non-performing assets (NPAs) in the builder and high-value loan segments in the fourth quarter.
Image Source
Next Story
Mumbai-Ahmedabad Bullet Train Set to Launch by 2028
India鈥檚 first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India鈥檚 infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..
Next Story
Mumbai-Gandhinagar Train Service Enhances Passenger Capacity
The Mumbai Central鈥揋andhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India鈥檚 busiest business corridors. This upgrade, effective from 11 May, raised the train鈥檚 seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai鈥揂hmedabad鈥揋andhinagar route, which regularly operates at over 150 percent seat occupancy...
Next Story
Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently
Delhi鈥檚 ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river鈥檚 health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..
