LIC Housing Finance Ltd, a leading mortgage lender, is keen to apply for a banking licence, following the Government's decision to open up the banking sector to more private players.

“We are interested in banking business. We are waiting for the RBI guidelines. This is line with our corporate policy of exploring new business opportunities,” Mr R. R. Nair, Director and Chief Executive, LIC Housing Finance, told Business Line.

Interestingly, the parent LIC, has significant stakes in several public sector banks, including a 26 per cent holding in Corporation Bank.

Mr Nair said the company will take a final call after the guidelines are issued. “We have to see whether housing finance companies are treated on par with NBFCs. Also whether it would be a conversion, or has to be a subsidiary,” he said.

Disbursements

LIC HF registered a 70 per cent growth in disbursements in the first 11 months of this fiscal, with the retail segment growing at 77 per cent.

“We have disbursed Rs 12,300 crore as on February 28. By March end, we are expecting to disburse around Rs 14,000 crore,” said Mr Nair. Last year, the company had disbursed Rs 8,762 crore.

The growth has come from across the country and not confined to any particular region. “The retail portfolio is growing well. We should disburse Rs 10,725 crore of retail loans this fiscal,” he said.

The company board, which met on Tuesday, approved a conservative target of Rs 17,000-crore disbursals for the next year.

“We set a target of 21 per cent growth in disbursals. We don't want to set ambitious targets in an uncertain environment. There are a lot of factors such as rising borrowing costs and impact of service tax on property prices that will have to be considered,” said Mr Nair.

Fund raising

LIC HF, which has raised Rs 15,000 crore this year, is looking to garner Rs 20,000 crore in the next fiscal to keep up with the level of growth.