LIC Housing eyes public deposits
LIC Housing Finance will enter the public deposit market in December to raise money in a span of 3-5 years.
By TNN |
MUMBAI: LIC Housing Finance will enter the public deposit market in December to raise money in a span of 3-5 years. The housing finance company plans to expand its international presence by opening offices in Singapore and Malaysia to tap the NRI clientele in South East Asia.
Speaking to ET, SK Mitter, LICHFL’s director and CEO, said, “The total fund requirement for the current financial year is of around Rs 6,000 crore, of which roughly Rs 2,000 crore has been mobilised in the first half. We may also look at raising finances though bank loans and non-convertible debentures. Public deposits is another option for which we are currently examining the pros and cons.”
Following the establishment of community living centres in Bangalore, and the second centre being set up in Bhubaneshwar, the company is in talks with state governments of Kerala, Maharashtra, Uttaranchal and Rajasthan for opening community living homes for senior citizens through its subsidiary, LICHFL Care Homes.
In this connection Mr Mitter said that procuring land for these centres remains a serious issue, and hence, the company prefers to go through the respective state governments, in which case dealings are more straightforward and economical in nature. However, the critical factor in these cases would be the rate of return which has to be competitive, he added.
LICHFL has hiked its lending rates twice in the recent past and the current rate of interest on floating rate loans stands at 9.5%. Mitter said that rates are likely to stabilise in the short term.
Speaking to ET, SK Mitter, LICHFL’s director and CEO, said, “The total fund requirement for the current financial year is of around Rs 6,000 crore, of which roughly Rs 2,000 crore has been mobilised in the first half. We may also look at raising finances though bank loans and non-convertible debentures. Public deposits is another option for which we are currently examining the pros and cons.”
Following the establishment of community living centres in Bangalore, and the second centre being set up in Bhubaneshwar, the company is in talks with state governments of Kerala, Maharashtra, Uttaranchal and Rajasthan for opening community living homes for senior citizens through its subsidiary, LICHFL Care Homes.
In this connection Mr Mitter said that procuring land for these centres remains a serious issue, and hence, the company prefers to go through the respective state governments, in which case dealings are more straightforward and economical in nature. However, the critical factor in these cases would be the rate of return which has to be competitive, he added.
LICHFL has hiked its lending rates twice in the recent past and the current rate of interest on floating rate loans stands at 9.5%. Mitter said that rates are likely to stabilise in the short term.
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