LIC Housing Fin to cut down gross NPAs to 3.9%

LIC Housing Finance expects to reduce its level of gross non-performing assets from 4.6 per cent recorded on 31 December 2005 to 3.9 per cent by the end of March 2006, said S K Mitter, director and chief executive officer, LIC Housing Finance, at a press conference.

The company had recovered about Rs 70 crore of bad loans during the nine months ended 31 December 2005. The market leader in housing finance, HDFC, reported a non-performing assets level of 1.49 per cent as on 31 December 2005.

Mitter said the company has served 7,035 notices under the Securitisation and Reconstruction of Assets and Enforcement of Securities Interest Act (Srafesi Act) and acquired 361 properties.

LIC Housing Finance expects to close the current financial year with a net profit of Rs 190 crore to Rs 200 crore, which would mean a 35 per cent to 40 per cent growth over last year's net profit. The outstanding mortgage portfolio is expected to touch Rs 16,000 crore for the current fiscal, compared to the outstanding mortgage portfolio of Rs 12,418 crore during 31 March 2005.

LIC Housing Finance's wholly owned subsidiary, LICHFL Care Homes, has been floated with an authorised capital of Rs 25 crore to conduct the business of running 'assisted living community centres' for senior citizens. The centres will house self contained residential units for senior citizens along with services like food, laundry and other housekeeping services.

The pilot project in Bangalore was completed and fully sold. It would be ready for occupation in March 2006, he added. The company has plans of setting up more such units in Pune, Kochi, Bhuvaneswar and Kolkata, he said.

Mitter said that negotiations were still on acquiring land in Kolkata and Bhubaneswar.