In the upcoming fiscal year, LIC Housing Finance Ltd. (LICHFL) intends to issue green bonds in order to raise money for ecologically friendly housing developments.
On March 7, the board of the insurance giant LIC’s mortgage division will meet to discuss and approve the borrowing plan for the fiscal year 2024–2025. This plan may involve the issuance of Tier II bonds, zero coupon bonds, subordinate debt, redeemable non-convertible debentures, or any other method permitted by the regulator.
“Green financing is something that we will look at the next year and we would deploy the fund for financing green housing projects,” LIC Housing Finance managing director and chief executive Tribhuwan Adhikari stated as quoted by PTI.
Roadmap for profit
According to the PTI report, Adhikari stated that LICHFL aims to reach the milestone of ₹5,000 crore in net profit by the end of the current fiscal year, citing strong loan demand and growth in non-core operations. He continued, “Loan against property (LAP) and affordable housing finance are examples of non-core businesses.”
“Affordable housing segment remained strong in tier-2 and tier-3 markets. We remained focused on this segment, as it gives an opportunity to millions of aspiring Indians to own their home with a moderate budget,” Adhikari said as reported by PTI. “Our endeavour has been to improve service standards through ongoing digital transformation of our processes.”
“We expect to close this financial year with healthy numbers,” the official added.
LICHFL recorded a net profit of ₹2,891 crore for the fiscal year 2022–2023. Compared to 2.41 percent in December 2022, the net interest margin (NIM) for the third quarter ending in December 2023 was 3.1%.
