Earlier in the week, LIC Housing Finance posted its sales for the September quarter showing a 12 per cent rise in its net profit.
In a segment with CNBC-TV18, Vinay Shah, Managing Director and Chief Executive Officer (CEO) of the company, discussed the business plans and earnings.
According to Shah, the incremental cost has increased. For the previous year’s Q2, it was in the range of 7.45 per cent in comparison to 8.07 per cent for the current year, as per reports.
Earlier in the day, (Tuesday, October 30th), Shah stated, “In a scenario, where the rates further increase we would have to pass it on to the borrowers along with the decision of how much of it to do and when to do it would also be decided at that point of time.”
According to Shah, the company expects an improvement in the net interest margin from the current level of 2.35 percent.
Speaking about the growth front, Shah said, “We would like to see the growth rate in excess of 16-17 percent for portfolio growth, as at the start of the year we aimed to achieve an overall growth rate in excess of 17-18 percent which is still probably achievable.”
The CEO of LIC Housing Finance then concluded by saying, “Much of the FY20 would depend on the general sentiment around the entire realty sector, however, we forecast it to be stable at this level if not increase even further, and we have complete confidence that it would continue at this level of more than 15-16 per cent for FY20 as well.”