Housing demand real: LICHFL
LIC Housing Finance has said home loan rates have not yet peaked but felt there is no asset bubble in the making as housing demand was real.
“Interest rates have no doubt been stable during the last two or three months. But it has not reached the level of 13-14 per cent as witnessed in the past. The rates have not peaked yet,” said LICHFL Director and Chief Executive Officer S.
The company, he said, aimed at growing its business by around 25 per cent in the next couple of years, five per cent less than the average growth in the home loan segment.
“The industry is expected to grow by around 30 per cent, but we have set a target of growing by 25 per cent in the next couple of years,” Mr. Mitter said, adding the company was not in the race for gaining market share.
During 2006-07, LICHFL disbursed Rs. 5,121 crore, a rise of just five per cent. It sanctioned Rs. 6,105 crore, a 19 per cent spurt over the previous year. The outstanding mortgage portfolio of the company, as on March 31, 2007, was Rs. 17,563 crore as against Rs. 14,867 crore.
He said demand for housing units in Tier-I cities may have slowed down a bit, but there is no lull in demand from Tier-II and Tier-III cities due to the IT boom.
Mr. Mitter said the company aimed to bring down its net non-performing assets (NPA) to below one per cent level during the year. — PTI
Send this article to Friends by