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M. Somasekhar

Hyderabad June 20 GIC Housing Finance Ltd is firming up plans to enter the reverse mortgage segment, which is targeted at senior citizens. It is also exploring forays in innovative mortgage linked insurance products.

To expand its housing loan portfolio and meet the growing demands, especially in the South, West and Northern India, about eight new branches would be opened this year. The company has set a target of disbursing Rs 1,000 crore of fresh loans in housing for the fiscal 2007-08, according to its Managing Director, Mr A.K. Guha.

"We are developing the software for putting in place the reverse mortgage product and should be in the market in the next 3-4 months. There is tremendous scope for the scheme, though it is still to take off as the concept is new in the country," Mr Guha told Business Line here today.

"On innovate mortgage linked products, the participation of a foreign partner is also being pursued. Talks are on with a few. The parent GIC in involved in the process," the Vice-President, Mr Rajib De, said.

The company is poised to take the third position in the housing finance industry, with its high growth performance in the past five years. During fiscal 2006-07, its loan portfolio touched Rs 2,000 crore, disbursals were at Rs 600 crore, profit after tax was Rs 50 crore and the company paid a dividend of 30 per cent on its expanded equity base, Mr Guha said.

At the inauguration of renovated office in Hyderabad, Mr Guha said the interest rates on housing had `steadied' and were not expected to go up further. The demand for housing is also high in some cities like Hyderabad, while the real estate prices are coming down in cities such as Mumbai and New Delhi.

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