LIC Housing Finance has seen strong growth in disbursals and its profit beat estimates on lower provisioning. Y Viswanatha Gowd, MD & CEO, of the company, said that so far growth has been good in Q4FY21 and he expects the trend to continue.

“We are seeing good growth. Up to Q3 also we have seen excellent growth. So far in Q4 also the same trend is continuing. We are hopeful that this growth will continue,” he said in an interview to CNBC-TV18.

He said that the various initiatives by the government and tax benefits are boosting growth.

“After the pandemic, working from home has become a new normal which has given an impetus to sales. Builders are also giving very good offerings to offload the ready stock. Many initiatives by the government and also tax benefits are helping a lot,” he said.

Gowd said that he expects to achieve double digit growth for the quarter as well as the year as a whole. He also said that they will maintain the current level of net interest margin (NIM).

“As far as NIMs are concerned, more or less we will maintain. As far as the cost of the borrowing is concerned, even though slight increase we have seen in the past 2 weeks, we feel it is only a temporary phenomenon, and our borrowings will be in bulk size. So, that will give an edge. Our incremental borrowings will not be that much. So, with that we are sure that we will be in a position to maintain our NIMs in the days to come,” he said.

Restructured book is seen at 1 percent by FY21, he added.

Watch the video for the full discussion

(Edited by : Abhishek Jha)