LIC Housing sets ambitious targets

LIC Housing Finance Ltd (LICHFL), after a lacklustre performance last year, has set ambitious targets for this year "" Rs 6,270 crore and Rs 2,275 crore for individual and project loan sanctions, respectively. The disbursment targets for individual loans and project loans are Rs 5,700 crore and Rs 1,850 crore, respectively.

Last year the sanctioned loan was Rs 4,400 crore and project loan Rs 794 crore. The disbursed individual loan amount was Rs 4,202 crore and project loan Rs 443 crore. The company has a 7 per cent share of the housing loan market.

S K Mitter, director, LICHFL said the lacklustre performance last year was due to the re-structuring under which the company separated appraisal and marketing departments from the area offices and set up back offices for the purpose.

The company plans to set up default recovery teams. "The rate of default at present is 4 per cent and a majority of defaulters are in the individual housing loans sector," said Mitter.