LICHF to double lending to developers

During FY12,LICHF8217;s disbursals to developers fell to Rs 910 crore as against Rs 2,400 crore in the previous year.

Even though loans to individual borrowers grew 18 per cent during the fiscal,the slowdown in project loans was cited as one of the reasons for a drop in net interest margin to 2.44 per cent versus the year-ago period8217;s 3.08 per cent.

Sharma said at its peak,loans to projects constituted for 12 per cent of the company8217;s books which has now come down to above 5 per cent.

8220;We plan to take it to over 8 per cent through the jump in disbursals to project loans,8221; said Sharma.

According to Sharma,loans to individuals earn the company an interest of around 11 to 12 per cent,while the same to corporates can get it over 15 per cent.

Courtesy a jump in lending to corporates,and softening of interest rates,Sharma said LICHF is hopeful that its NIM will regain lost ground and climb up to over 3 per cent during the quarters ahead.

On the individual loan side,Sharma said he expects a 20 per cent increase in spite of fears of a slowdown in activity,and piling up of inventories as a consequence,by focusing on Tier-II and III cities.

Speaking about other forward looking plans,Sharma said the company plans to undertake a institutional share sale by June and will decide the exact timing depending on market conditions.

LICHF has got shareholder approval to sell 4.6 crore shares through the QIP issue,he said. Shares of LICHF closed at Rs 254.20 a piece at the end of trading on April 27 at the BSE.