LIC Housing Finance, the mortgage arm of insurance giant LIC, intends to raise funds through green bonds in the upcoming financial year to support environmentally sustainable housing projects. “Green financing is a priority for us in the next fiscal year, and we aim to allocate these funds towards financing green housing initiatives,” stated Tribhuwan Adhikari, MD and CEO of LIC Housing Finance, in an interview with PTI.
The company’s board meeting is scheduled for March 7 to deliberate and approve the borrowing plan for 2024-2025, which may involve obtaining loans, issuing redeemable non-convertible debentures, zero-coupon bonds, subordinate debt, Tier II bonds, or other methods sanctioned by regulators.
Adhikari expressed confidence in achieving a net profit milestone of Rs 5,000 crore by the end of the current financial year, propelled by strong loan demand and expansion in non-core businesses, including Loan Against Property (LAP) and affordable housing finance. He emphasized the resilience of the affordable housing segment, particularly in tier-2 and tier-3 markets, as it enables millions of Indians to realize their homeownership aspirations within a reasonable budget.
Furthermore, Adhikari highlighted the company’s commitment to enhancing service standards through ongoing digital transformation initiatives. With the fourth quarter typically being crucial for business performance, he anticipates closing the financial year with promising results, building upon the net profit of Rs 3,675 crore earned in the preceding three quarters and aiming to reach the Rs 5,000 crore milestone by the fiscal year-end.
In the fiscal year 2022-23, LIC Housing Finance achieved a net profit of Rs 2,891 crore. The Net Interest Margin (NIM) for the quarter ending December 2023 stood at 3%, reflecting an improvement from the 2.41% recorded in December 2022.
