LIC Housing Finance targets 18% growth in total portfolio in FY17
MUMBAI: Riding high on the housing finance boom, LIC Housing Finance is targeting nearly 18% growth in its total portfolio in FY17. “This year, we had growth of more than 18%. Next year, growth should be between 15-18%,” Sunita Sharma, CEO of LIC Housing Finance said.
The company reported a fourth quarter profit of Rs 448 crore, up 18.5% compared to last year. Sharma said the company was not planning to raise any capital in FY17. “Last October, RBI released fresh guidelines for risk weightage, because of that some release of capital has taken place,” Sharma said. “So, we are not looking to raise capital in the next 12 months.”
Its provisioning has also seen a steady rise with the HFC reporting a total provisioning of Rs 820 crore in FY16, of which Rs 522 crore was standard asset provisioning. “When there is growth in the loan book the provisions will increase because we have to make provisions for standard assets too,” Sharma said. “Provision is not because of increase in NPA but because the loan book is growing.” Sharma said while they reported fresh slippages of .`15 crore at the end of March 2016, she was not expecting any fresh slippages in the coming quarters.