LIC Housing Finance sees spurt in demand

LIC Housing Finance sees spurt in demand
The Hindu Business Line, June 13, 2009, Page 6

Eyes disbursements of Rs 13,000 cr this fiscal.

Mr R.R. Nair, Our Bureau, New Delhi

LIC Housing Finance on Friday said that consumer demand for housing is on a revival path, and that the company is targeting loan disbursement of up to Rs 13,000 crore in the current financial year. The disbursements last fiscal stood at Rs 8,764 crore.

“We have seen a 100 per cent growth in loan approvals and sanctions so far this fiscal, and a 40 per cent rise in the number of loan applications. In the first two months of the fiscal, our disbursement has been Rs 2,000 crore, while the approval was about Rs 3,000 crore for the same period,” Mr R.R. Nair, Director and Chief Executive, said on the sidelines of the ‘Homes For All’ Expo. The three-day real estate expo is being organised by LIC Housing Finance and is targeted primarily at the first-time home buyers.

Mr Nair said that the demand is coming back into the market since mid-February. “Demand is a function of factors such as property prices, lending rates, income of the individual and value perception. I think that the prices may have bottomed out,” he said.

Sanctions

Asked about the loan sanctions targeted for this year, Mr Nair said, “Last year, the approvals stood at Rs 10,000 crore whereas this year it is likely to be Rs 15,000 crore.” LIC Housing Finance plans to issue one crore equity shares through a Qualified Institutional Placement (QIP). Mr Nair, however, declined to comment on the amount that would be raised through the QIP issue.

The company plans to raise debt of Rs 15,000 crore in the current financial year, compared with Rs 11,000 crore it had raised last fiscal.

“We have already raised Rs 3,000 crore so far this year. The debt would be raised via NCD, CP, term loans from banks and financial institutions and our own deposits,” he said.

Showcasing properties

Meanwhile, the expo saw builders showcasing properties in the Delhi-NCR region.

The builders who participated in the expo included Ashiana Homes, Ajnara, Amrapali Group, Emaar MGF, Gaursons, MVL Ltd, Omaxe, Optus Developers, Parsvnath Developers, Raheja Developers, SVP Group, TDI Infrastructure, Today Homes & Infrastructure, Triveni Infrastructure, Unitech, V3S Group, Vatika Group and Vipul Group amongst others.