LIC Housing Finance plans to raise funds through green bonds next fiscal year

LIC Housing Finance, the home loan arm of insurance major LIC, plans to mobilize funds through green bonds in the next financial year to finance environmentally sustainable housing projects.

In an interaction, Tribhuwan Adhikari, MD and CEO of LIC Housing Finance, said, “Green finance is something we will look at next year and we will put the funds towards financing green housing projects.” ” he said in an interaction with PTI.

LIC Housing Finance held a board meeting on March 7 to borrow in 2024-2025 through loans or redeemable non-convertible debentures, zero coupon debentures, subordinated debentures, Tier II debentures or other instruments approved by the government. The plan will be reviewed and approved. regulator.

Adhikari said the company hopes to achieve a milestone of Rs 5,000 crore in net profit by the end of this financial year on the back of strong loan demand and expansion in non-core businesses.

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

He said, “The affordable housing segment continued to perform well in Tier 2 and Tier 3 markets. This segment is providing millions of aspiring Indians with the opportunity to own a home on a modest budget. “We continued to focus on this segment because of the value it offers.”

In addition to growing the business, “our efforts have been to improve service standards through the continued digital transformation of our processes,” he said.

The fourth quarter is typically the company’s most important operating month, and if it follows current trends, “we expect to end the current fiscal year with healthy numbers,” he said. He said the company had a net profit of Rs 3,675 crore in the third quarter and hoped to reach the Rs 5,000-crore milestone by the end of this financial year.

The largest housing finance company had earned a net profit of Rs 2,891 crore in 2022-23.

Net interest margin (NIM) for the quarter ended December 2023 was 3% as against 2.41% recorded in December 2022.