LIC Housing Finance plans to borrow Rs 25,000 crore in FY13

LIC Housing Finance, a subsidiary of state-run insurance giant LIC, is planning to borrow around Rs 25,000 crore in the current financial year, which is about 13.5 per cent higher than FY12, a top official said today.

"We have plans to borrow around Rs 25,000 crore in the current fiscal to support our business growth against Rs 22,000 crore we had raised last fiscal," LIC Housing Chief Executive V K Sharma said on the sidelines of an event organised by Indian Merchants Chamber here.

Sharma said most of these funds would be raised through bonds.

The housing finance firm raises money from banks and also from markets by issuing bonds. The ratio of money raised through bonds is around 65 per cent of the total fund raised by the company.

On growth projection for FY13, Sharma said the company is likely to grow its loan book by 20-25 per cent. "We hope to grow by around 20-25 per cent in the current financial year."

About the private equity arm of the company, Sharma said LIC Housing had received Rs 250 crore of commitment from investors for the private equity fund named as urban development fund.

"We will start investing in projects in the near future from this fund," Sharma said.

LIC Housing had reported a 43 per cent growth in net profit at Rs 305.69 crore in the December quarter on an income of Rs 1,593 crore.

Source: EconomicTimes