Priya PatelTLDR:
- LIC Housing Finance plans to raise funds through green bonds in the next financial year to finance environmentally sustainable housing projects.
- The company aims to hit a net profit milestone of Rs 5,000 crore by the end of the current financial year.
LIC Housing Finance, the mortgage arm of insurance behemoth LIC, is looking to raise funds through green bonds in the upcoming financial year to finance environmentally sustainable housing projects. The MD and CEO, Tribhuwan Adhikari, mentioned that the company will have a board meeting to approve the borrowing plan for 2024-2025 through various means approved by the regulator. Additionally, the company aims to reach a net profit milestone of Rs 5,000 crore by the end of the current financial year, driven by robust loan demand and expansion in non-core businesses such as Loan Against Property and affordable housing finance. Adhikari highlighted the strength of the affordable housing segment in tier-2 and tier-3 markets and the company’s focus on improving service standards through digital transformation.
In the three quarters leading up to the current financial year, LIC Housing Finance has already earned a net profit of Rs 3,675 crore and aims to touch the milestone of Rs 5,000 crore by the end of the financial year. The Net Interest Margin for the quarter ended December 2023 was 3%, indicating positive growth for the company. With the fourth quarter traditionally being the most important for business, the company is optimistic about closing the financial year with healthy numbers. This plan for green bonds reflects LIC Housing Finance’s commitment to sustainability and responsible financing in the housing sector.
