+
LIC Housing Finance to boost loan business project in FY2023
Real Estate

LIC Housing Finance to boost loan business project in FY2023

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

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

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code