LIC Housing Finance, a subsidiary of Life Insurance Corp is on the move of expansion of its loan base looking at the growing demand for affordable housing. The company plans to expand its loan portfolio by the next fiscal. Also this fiscal mortgage companies are recovering from last year’s economic crisis.
R R Nair, chief executive & director at LIC Housing Finance informed, “Last year it was a difficult year for housing finance companies, as we could grow only by 24 per cent and this year our growth is over 60 per cent. So with this trajectory we will be able to make a growth of 30-40 per cent next year. We are planning Rs 18,000 crore of disbursement next year.”
Also, company is waiting for the government or the Reserve Bank of India's guidelines for applying for a banking license.
Nair said, “We recognize it is an opportunity and welcome it, we have to wait for the guidelines and regulatory requirements before taking a call if we are eligible for it and if eligible what are the requirements to fulfill. So after knowing the details we will take a call. We are positive about it.”
It was in 2003 RBI has issued the banking licenses before this.
Along with LIC housing there are other corporates that are trying to convince the apex bank for permission to set up banking operations and these include Reliance Capital, the Bajaj Group, the Tatas and Birlas.