IDBI branches may sell LIC Housing Finance’s mortgage scheme, says CEO Vinay Sah

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LIC Housing Finance reported a 16.70 percent growth in net profit at Rs 693.58 crore for the March quarter of 2018-19. Total income rose to Rs 4,655 crore during the fourth quarter, from Rs 3,887 crore in the same period of the previous fiscal.

Vinay Sah, MD and CEO, LIC Housing Finance, gave a breakdown on the numbers.

“When we started FY19, we were looking at growth rate on disbursement in the range of 15 percent plus. The portfolio growth rate was targeted at about 16-17 percent,” Sah said, adding that going ahead, the company would like to continue at a similar growth rate for both disbursement and portfolio, to be in excess of 15-16 percent.

On LIC-IDBI merger, Sah said, “The memorandum of understanding (MoU) that LIC has entered with IDBI, especially regarding the mortgage business, probably there is a clause which says that going ahead maybe IDBI branches will sell LIC Housing Finance’s mortgage scheme. But the MoU has to be entered into and the process has to be initiated. Nothing of the sort has started as yet.”

“Nothing has been decided but most probably they will stop selling their mortgage scheme and they will start selling LIC HFL mortgage schemes,” he added.