LIC Housing Finance Targets Rs. 75,000 Crore Disbursements in FY25, AUM Growth of 10-12%

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LIC Housing Finance Sets Ambitious Targets for FY25, Aims to Boost Disbursements and AUM

Team FS

19/Jun/2024

Key Points:

PMAY Disbursements: LIC Housing Finance disbursed Rs. 42,000 crore under PMAY from 2015 to 2024.
FY25 Targets: Targets include Rs. 75,000 crore in disbursals, 10-12% growth in AUM, and NIMs between 2.7% to 2.9%.
Strategic Focus: Focus on expanding loan portfolio and enhancing profitability metrics.

LIC Housing Finance Sets Ambitious Targets for FY25, Aims to Boost Disbursements and AUM

LIC Housing Finance Limited, one of India’s leading housing finance companies, has outlined ambitious targets for the financial year 2024-25, highlighting its focus on significant growth across key operational metrics.

PMAY Disbursements and Historical Performance

LIC Housing Finance has been actively contributing to the Pradhan Mantri Awas Yojana (PMAY) initiative, disbursing a total of Rs. 42,000 crore from 2015 to 2024. This substantial contribution underscores LIC Housing Finance’s commitment to supporting affordable housing initiatives and promoting homeownership among Indian citizens.

FY25 Targets: Disbursements, AUM Growth, and NIMs

For the financial year 2024-25, LIC Housing Finance has set ambitious targets across various financial parameters:

Disbursements: The company aims to achieve disbursals amounting to Rs. 75,000 crore during FY25. This target reflects LIC Housing Finance’s strategic focus on expanding its loan portfolio and catering to the growing demand for housing finance solutions in India.
Assets Under Management (AUM) Growth: LIC Housing Finance targets a robust growth of 10-12% in its Assets Under Management (AUM) in FY25. This growth trajectory is driven by increasing demand for housing loans and other financial products offered by the company.
Net Interest Margins (NIMs): The company expects its Net Interest Margins (NIMs) to range between 2.7% and 2.9% in FY25. This margin projection reflects LIC Housing Finance’s emphasis on maintaining profitability while effectively managing its interest rate spread.

Strategic Initiatives and Market Positioning

LIC Housing Finance’s ambitious targets for FY25 are aligned with its strategic initiatives aimed at enhancing market penetration and operational efficiency. The company continues to leverage its extensive distribution network, customer-centric approach, and technological advancements to strengthen its position in the competitive housing finance sector.

Economic Impact and Growth Prospects

The projected increase in disbursals and AUM underscores LIC Housing Finance’s role in supporting India’s economic growth through the provision of affordable housing finance solutions. By expanding its lending activities and broadening its customer base, the company aims to contribute significantly to the country’s housing sector development.

Conclusion

LIC Housing Finance’s strategic targets for FY25, including substantial disbursals, growth in AUM, and healthy NIMs, highlight its proactive approach to capitalizing on growth opportunities in the housing finance market. With a robust framework in place and a strong commitment to customer satisfaction, LIC Housing Finance is well-positioned to achieve its financial objectives and drive sustainable value creation for its stakeholders in the upcoming fiscal year.

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