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LIC Housing Finance plans to raise funds via green bonds in the next financial year

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New Delhi: LIC Housing Finance, the mortgage arm of insurance giant LIC, plans to mobilize funds through green bonds during the next financial year, with the aim of financing environmentally friendly housing projects. “Green financing is something we will look at next year and we will deploy the fund to finance green housing projects,” PFR housing financing Managing Director and CEO Tribhuwan Adhikari told PTI in an interaction.

PFR housing financing will hold its board meeting on March 7 to review and approve the borrowing plan for 2024-2025 through loans or issuance of non-convertible redeemable debentures, zero coupon bonds, subordinated debt, Tier II bonds or any other means approved by the regulator.

Adhikari said the company hopes to reach the net profit of Rs 5,000 crore by the end of the current financial year on the back of strong loan demand and expansion of non-core businesses.

Non-core activities include Loans Against Property (LAP) and affordable housing financinghe said.

“The affordable housing segment remained strong in the Tier 2 and Tier 3 markets. We remained focused on this segment as it provides an opportunity to millions of aspiring Indians to own their homes on a moderate budget.” , did he declare.

Besides growing the business, he said, “our effort has been to improve service standards through the continued digital transformation of our processes.” With the fourth quarter typically being the company’s biggest month of business, and given current trends, he said, “we expect to close this fiscal year with healthy numbers.” He said the company made a net profit of Rs 3,675 crore in the three quarters and hopes to cross the Rs 5,000 crore milestone by the end of this financial year.

During 2022-23, the largest housing finance company had made a net profit of Rs 2,891 crore.

The net interest margin (NIM) for the quarter ended December 2023 was 3 percent compared to 2.41 percent recorded in December 2022.

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