LIC Housing Finance rises

LIC Housing Finance said disbursements jumped 62.6% in 2002-03 and this served to help the scrip onward on its recent uptrend.

In fact, the scrip has risen for the sixth day in a row on Tuesday.

The scrip of the housing finance major, LIC Housing Finance, edged up 1.4% to Rs 71.80 in early trades on BSE. A total of 2,280 LHFL shares changed hands on BSE in about half-an-hour of trades. Over the last few sessions, the scrip has moved towards the higher side of the Rs 60-70 band. It was within this range for much of the last few months. From Rs 65.80 on 31 March 2003, the scrip has surged 9.1% to the current Rs 71.80.

The early rise on the counter today comes following reports that LHFL has recorded a spectacular growth in business during the financial year ended 31 March 2003. The company sanctioned 84,126 loans for a total amount of Rs 3265.78 crore (Rs 32.65 billion) and disbursed 76,663 loans for a total amount of Rs 2941.24 crore (Rs 29.41 billion) under the individual loans category in the course of the year. The total sanctions inclusive of individual and project loans amounted to Rs 3593.44 crore (Rs 35.93 billion). Disbursements totaled Rs 3190.83 crore (Rs 31.9 billion), showing a robust growth of 62.6%.

The solid growth recorded by the company in disbursements may be attributed to the buoyant housing finance market spurred on by the low interest regime, tax benefits and low property prices. SC Jain, Chief Executive, LIC Housing Finance, said, "As an essential part of our long term strategy we have been focusing on delivering superior value to the customers in terms of competitive price, customised products and transparent business practices for the benefit of customers and excellent service. Our record performance this year is the result of all these initiatives."

During the fiscal ended 31 March 2003, the housing finance sector witnessed fierce and aggressive competition, with a number of Indian and international banks joining the fray. The company is the second biggest player in the housing loan segment with a market share of around 18%.

LHFC was promoted by Life Insurance Corporation in 1989 and came out with a public issue in 1994.

In August 2002, the company acquired the individual housing loan portfolio of Citibank for a consideration of Rs 233 crore (Rs 2.33 billion). This was the second acquisition of a housing loan portfolio by the company. Earlier, in January 2002, it acquired the housing loan portfolio of GLFL Housing Finance covering 4065 cases amounting to Rs 55.34 crore.