LIC Housing Finance plans to raise funds through green bonds in FY25

LIC Housing Finance Ltd (LICHFL) plans to raise funds through green bonds in the next financial year with the aim of financing environmentally sustainable housing projects.

Tribhuwan Adhikari, managing director and chief executive officer of LIC Housing Finance, informed, “Green finance will be considered next year and we will deploy funds to finance green housing projects.” P.T.I..

Insurance major LIC’s home loan arm will hold a board meeting on March 7 to consider borrowing plans for FY 2024-2025 through loans and issuance of redeemable non-convertible bonds, zero coupon bonds, subordinated bonds and Tier II bonds. , is scheduled to be approved. or any other means approved by a regulatory authority.

Please also read: LIC Housing Fin provides affordable home loans to banks for credit expansion and interest margins.

profit target

LICHFL wants to achieve a net profit. INR5 billion milestone by the end of this financial year on the back of strong loan demand and expansion of non-core businesses, Adhikari said, according to a PTI report.

He added that non-core businesses include real estate financing (LAP) and affordable housing finance.

“The affordable housing segment continued to perform well in Tier 2 and Tier 3 markets. To give millions of aspiring Indians the opportunity to own a home on a modest budget, we We continued to focus on,” Adhikari was quoted as saying. P.T.I.. “Our effort has been to improve service standards through continuous digital transformation of our processes.”

“We expect to end the financial year with healthy numbers,” the chief executive added.

In the financial year 2022-23, LICHFL had reported a net profit. INR289.1 billion. Net interest margin (NIM) for the third quarter ended December 2023 was 3% compared to 2.41% recorded in December 2022.

Adhikari said in February that LICHFL aims to more than double the share of affordable home loans in its loan book to 20-25 per cent in the next two years.

He said the housing finance company’s loan growth slowed to 5% in the December quarter due to internal restructuring and management changes.