LIC Housing Finance Targets Green Bond Fundraising for FY 2025

LIC Housing Finance Ltd (LICHFL) is gearing up to raise funds through green bonds in the upcoming financial year targeting environmentally sustainable housing projects. Managing Director and CEO, Tribhuwan Adhikari, expressed the company's commitment to green financing intending to allocate the funds towards supporting green housing initiatives.

LIC Housing Finance Profit Target

In its board meeting scheduled for 7 March LICHFL will deliberate on and approve its borrowing plan for the fiscal year 2024-2025. The company aims to raise funds through various financial instruments such as loans, redeemable non convertible debentures, zero couponed bonds, subordinate debt, Tier II bonds or other approved means.

LICHFL aims to achieve a net profit milestone of ₹5,000 crore by the end of this fiscal year driven by strong demand for loans and growth in non core areas according to Adhikari. These non core areas include loan against property (LAP) and affordable housing finance.

Adhikari highlighted the continued strength of the affordable housing segment in tier 2 and tier 3 markets emphasizing their focus on providing opportunities for millions of aspiring Indians to own a home within a moderate budget. He also mentioned their commitment to improving service standards through ongoing digital transformation. Adhikari expressed optimism about closing the financial year with strong results.

LIC Housing Finance Ltd Financial & Future Outlook

In the last financial year 2022-23, LICHFL recorded a net profit of ₹2,891 crore. Notably, its net interest margin (NIM) for the third quarter of December 2023 improved to 3 percent from 2.41 percent in December 2022. Despite experiencing slower loan growth of 5 percent in the December quarter due to internal restructuring and management changes the company anticipates closing the current financial year with robust numbers.

Looking ahead LICHFL sets targets aiming to more than double the share of affordable housing loans in its loan book to 20-25 percent within the next two years. With the fourth quarter typically being crucial for business performance the company remains optimistic about achieving its financial targets building on its solid performance in the preceding quarters.

To Summarize

LIC Housing Finance's strategic focus on green financing and affordable housing highlights its commitment to sustainability and inclusive growth. With a clear roadmap and ambitious targets in place the company is poised to make significant strides in the housing finance sector contributing to the realization of India's housing aspirations while ensuring environmental responsibility.