The Hindu Business Line : LIC Housing Fin trimming NPAs

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Bangalore Jan. 25 LIC Housing Finance Ltd is striving to reduce its net non-performing asset to below one per cent by next year. With its recovery department backing the ambitious target by constantly improving recoveries, LICHFL has been able to bring its net NPA to 1.9 per cent during the third quarter of FY 2006-07 from 3.1 per cent in the same period in 2005.

Addressing a news conference here on Thursday, Mr S.K. Mitter, Director and Chief Executive, said that Karnataka, which is part of the South Central Region, has been a key contributor not only to LICHFL's business, but also to the company's efforts to reduce the NPA.

He said with its good asset class and repayment record, the company hoped to achieve higher growth.

The Bangalore offices of the company have recorded a growth rate of 36 per cent in sanctions and 46 per cent in disbursement during the first nine months of FY 2006-07, said Mr Mitter.

The SCR comprising Andhra Pradesh and Karnataka sanctioned Rs 885 crore and Rs 784 crore worth of loans for the nine months ending December 2006, recording a 16 per cent growth each over the same period in the previous year.

Karnataka with 10 and Andhra Pradesh with 15 area offices, the region is poised to achieve a growth rate of 30 per cent this financial year, he said.

On the overall business plans of LICHFL, Mr Mitter said the company was contemplating entering into tie-ups with reputed real estate companies in Karnataka to grow its retail lending, which constituted 90 per cent of its business.

Ruling out any change in the portfolio, he said LICHFL was not keen to increase its exposure to commercial sector lending.

More Stories on : Housing Finance | Non-Performing Assets

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