LIC Housing Finance (LIC HF) is set to strengthen its position as the largest housing finance company by expanding its branch network, increasing focus on high-yielding loan against property (LAP), and intensifying recovery efforts. This move comes after the merger of its larger rival, Housing Development Finance Corp, with its banking arm. According to LIC HF CEO Y Viswanatha Gowd, the company aims to enhance its net interest margin (NIM) and boost loan disbursements in the current fiscal year. After experiencing sluggish growth in the last two quarters, LIC HF plans to add 25 to 30 branches and expand its presence in smaller towns, particularly in Maharashtra and Madhya Pradesh, where home loan penetration is relatively low. Gowd anticipates a loan book growth of 10% to 12% in the current fiscal year, surpassing the 9.50% growth reported in the previous year. In fiscal year 2023, disbursements to individuals witnessed a slight decline of 0.37% to Rs. 534.59 billion. However, project loan disbursements doubled from Rs. 13.12 to Rs. 26.97 billion compared to the previous fiscal year. Despite a 22% increase in net interest income, LIC HF's net profit only rose by 5.5% in the quarter ending March 2023. The growth in provisions was driven by a significant rise in loans overdue by more than 30 days. Loans overdue between 30 and 60 days increased from 3.9% in December 2022 to 5.3% of the loan book. Gowd attributed the spike in overdue payments to higher bounce rates in some direct debit mandates, as EMIs had substantially increased in the past year. The company has taken steps to address this issue by reestablishing customer mandates or extending their tenures. Gowd expressed optimism that asset quality would improve, leading to a reduction of 20% to 30% in non-performing assets (NPAs) and lower NPA ratios in the coming year. Through its strategic initiatives, LIC Housing Finance aims to fortify its market presence, enhance profitability, and improve asset quality in the competitive housing finance sector.