Impact of RBI Regulation Change; LIC Housing Finance CEO Warns Against the Construction Loan Business Due to High Risk.

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RBI's new regulations require lenders to set aside 5% of loan amounts during construction, reducing to 2.5% once projects are operational.

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LIC Housing Finance CEO Tribhuwan Adhikari emphasizes caution in project loans due to high risk, influenced by past performance and new RBI norms.

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The company's project finance portfolio decreased by 5% in FY24, falling to Rs 2,560 crore from Rs 2,697 crore in FY23.

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Adhikari aims to grow LIC's affordable housing book to 20-25% from the current 10-12% in the next 3-4 years, with plans to open more offices in tier-3 cities.

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LIC Housing Finance is taking steps to address RBI penalties and overcharged interest issues. The company reported a 7.5% drop in net profit to Rs 1,091 crore, compared to Rs 1,180 crore for Q4FY24 due to a one-off expense.

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Impact of RBI Regulation Change; LIC Housing Finance CEO Warns Against the Construction Loan Business Due to High Risk.

RBI's new regulations require lenders to set aside 5% of loan amounts during construction, reducing to 2.5% once projects are operational.

RBI Rule Change and LIC Housing Finance

LIC Housing Finance CEO Tribhuwan Adhikari emphasizes caution in project loans due to high risk, influenced by past performance and new RBI norms.

CEO's Cautious Stance on Project Loans

The company's project finance portfolio decreased by 5% in FY24, falling to Rs 2,560 crore from Rs 2,697 crore in FY23.

Decline in Project Finance Portfolio

Adhikari aims to grow LIC's affordable housing book to 20-25% from the current 10-12% in the next 3-4 years, with plans to open more offices in tier-3 cities.

Focus on Affordable Housing

LIC Housing Finance is taking steps to address RBI penalties and overcharged interest issues. The company reported a 7.5% drop in net profit to Rs 1,091 crore, compared to Rs 1,180 crore for Q4FY24 due to a one-off expense.

Corrective Measures and Financial Performance