A recent press report said LIC Housing Finance (LICHF) has reported a 21 per cent increase in net profit at Rs 256.50 crore in the April-June quarter, against Rs 212 crore last year.
The profit includes a 40 per cent rise in income from operations and a 36 per cent increase in other operating income such as liquid schemes of mutual funds and interest on bank deposits.
Reports said that project loan disbursements were down 79 per cent to Rs 77 but individual loan disbursements were up 15 per cent to Rs 3,468 crore (Rs 3,018 crore).
Mr. V. K. Sharma, Director and Chief Executive, LICHF said that there is a slow down in real estate transactions in certain parts of the country because customers are waiting for the prices to go down. He said that there was a good demand for self-occupied housing in Chennai and Tier-II and Tier-III cities.
He also said that the slowdown in project lending, after December 2010, was dull as the company reviewed all sanctions and disbursements and put systems in place.
He said that in the project loan segment, LICHF is neither giving loans for purchase of land nor extending term loans. The home loan lenders have so far sanctioned and disbursed project loans amounting to Rs 150 crore.