The Hindu Business Line : LIC Housing Fin to engage loan recovery agents

LIC Housing Finance Ltd (LICHFL) has decided to appoint recovery agents across the country in a bid to cut down accretion of non-performing assets (NPA).

Speaking to newspersons here, LICHFL's Managing Director and Chief Executive, Mr S.K. Mitter, said that the move was taken in view of the high NPAs of the company. The company has an NPA of four per cent, way above the industry average of two per cent. LICHFL is a subsidiary of Life Insurance Corporation of India.

Mr Mitter said in addition to these efforts, LICHFL also proposed setting up default recovery teams in some of its offices. Besides, wherever possible LICHFL also intended taking recourse to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. Through these efforts, he said LICHFL hoped to bring down its NPA to three per cent this year and eventually within industry standards.

This year, LICHFL hopes to disburse Rs 5,700 crore as retail advances and Rs 1,850 crore as project advances. The total sanctions this year are estimated at Rs 8,545 crore. Till March 2005, disbursements of the LICHFL were Rs 4,650 crore.

The big jump in disbursements estimated for this year would still leave LICHFL with only a seven per cent share in the housing finance market, he added.

For the meeting the resource requirements of the increased disbursement, Mr Mitter said LICHFL hoped to raise at least Rs 5,000 crore by way of borrowings. Already the company had raised Rs 1,000 crore through borrowings. In addition, the company was also mulling issuance of Foreign Currency Convertible Bonds (FCCB). The FCCB programme, however, was yet to be finalised, he added.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ICAI revises bank audit report format

Cheque truncation system to begin from March 2006 — High service charge not desirable, RBI tells banks

Rupee tad weaker; bond prices fall

LIC Housing Fin to engage loan recovery agents

Repco Home Fin loan camp in Thiruvananthapuram

Max NY Life aims to double business

Cover for Maharashtra students dents insurers, post-floods — Death claims, replacing lost textbooks, repairs to schools

Debt revamp: SMEs get a leg up from RBI

RBI to approve opening, closing of bank branches, ATMs on annual basis

Pru ICICI MF to tie up with UCO Bank

Govt issues oil bonds worth Rs 5,762.8 cr

Review norms governing co-op credit bodies: PM

Chidambaram hopeful of Centre-States consensus