LIC Housing Finance Shares in Focus: Board-Approved Borrowing Plan For FY25-26

On March 6, 2025, LIC Housing Finance shares will be in focus as the mortgage subsidiary of insurance giant LIC announced that its board of directors had approved a borrowing plan of ₹1,22,500 crore for FY2025-26 to raise funds via various instruments. This decision made during a board meeting on March 5, 2025, follows a recommendation from the company’s Audit Committee.

How LIC HFL Will Raise Funds?

LIC Housing Finance will raise funds through a combination of loans, redeemable non-convertible debentures (NCDs), zero-coupon bonds, subordinate debt, upper-tier II bonds, commercial paper, external commercial borrowings (ECBs), securitisation, and refinancing from the National Housing Bank (NHB).

Additionally, LIC Housing Finance may seek to raise deposits from the public, corporates, and trusts through private placements or public issuances in multiple tranches.

LIC Housing Finance Q3FY25 Overview

For Q3 FY2025, total disbursements amounted to ₹15,475 crore, compared to ₹15,184 crore during the same period in FY2024, reflecting a 2% increase. Of this, individual home loan disbursements totalled ₹12,248 crore, down from ₹12,868 crore, while project loans surged to ₹983 crore, compared to ₹375 crore for the same quarter last year, marking a 162% increase.

The company’s revenue from operations was ₹7,057 crore, up 4% from ₹6,792 crore in the previous year. Net Interest Income (NII) stood at ₹2,000 crore, slightly down from ₹2,097 crore in the same period last year.

Net profit after tax for the quarter reached ₹1,431.96 crore, a 23% increase from ₹1,162.88 crore during the same period last year. The individual home loan portfolio grew by 7%, reaching ₹2,54,652 crore, compared to ₹2,38,499 crore. The project loan portfolio increased by 2%, standing at ₹8,776 crore as of December 31, 2024, up from ₹8,569 crore a year earlier. Overall, the total outstanding portfolio grew by 6%, reaching ₹2,99,144 crore, up from ₹2,81,206 crore.

Conclusion

The fundraising plan of ₹1,22,500 crore for FY2025-26 will be completed via a combination of loans, redeemable non-convertible debentures (NCDs), zero-coupon bonds, subordinate debt, upper-tier II bonds and other instruments.

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