LIC Housing Finance to soon launch reverse mortgage

New Delhi, July 30 (UNI) LIC Housing Finance Ltd (LICHFL) today said it will soon come out with its reverse mortgage scheme which it has already finalised and is awaiting the approval of National Housing Board (NHB) and the Central Board of Direct Taxes (CBDT).

''Our product is ready and once issues like capital gains arising out of properties that are sold out and if national interest is to be calculated in the current year is sorted out by the NHB and CBDT, we would be launching the scheme,'' said LIC Housing Finance Ltd Director and Chief Executive S K Mitter.

Regarding the much-awaited RBI monetary policy to be announced tomorrow, Mr Mitter said that he hoped that there would be stability in the rates and there would be no hike in interest rate.

''A stable investment regime where the market rates are stable and the borrowing cost goes down might induce us to reduce interest rates,'' said Mr Mitter.

The company said it is looking to expands the business of its 100 per cent subsidiary LICHFL Care Homes Ltd, which is financing the 'Assisted Living Community Centers' for senior citizens, to states like Delhi, Uttaranchal, Kerela and Maharastra and added that it is in talks with the state governments for the procurement of land.

'' We are not looking at raising capital and the since the housing finance sector is not allowed to raise capital through ECB, we might look at FCCB's if the need arises,'' said Mr Mitter.

He also added that the company has raised the issue of allowing ECB's in housing finance sector with the NHB.

Presently the capital adequacy ratio of LICHFL is 17 per cent while the statutory provision is of 12 per cent.

Out of the Rs 85,000 crore incremental amount disbursed in the housing finance sector, LICHFL commanded a eight per cent market share.

Mr Mitter said the housing finance scheme, which has been seeing technical corrections and is under a recession can be revived if the government modifies the stamp duty and Floor Space Index (FSI) rate.

On the Non-Performing Assets (NPA) of the company, Mr Mitter said that the LICHFL aimed at gross NPA of less then two per cent and a net NPA of less then one per cent.

LICHFR has set a loan disbursement target of Rs 7,385 crore and a loan sanction of Rs 8,600 crore this fiscal with a growth rate of 22 per cent UNI PBB MP RN1741