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Informist, Thursday, Oct. 30, 2025

--LIC Housing: To raise around INR 200 bln via NCDs in rest of FY26 

--CONTEXT: Comments by LIC Housing Finance mgmt at post-earnings press meet 

MUMBAI – LIC Housing Finance Ltd. will raise funds worth INR 200 billion through non-convertible debentures in the remaining of the current financial year ending March, the company management said in a post earnings call with media. The company has a provision of raising a total of INR 300 billion through non-convertible debentures in FY26, out of which it has already raised INR 100 billion, the management said. 

In the second half of FY26, around INR 300 billion worth of non-convertible debentures are due for maturity, which will help in bringing down the company's cost of borrowing, the management said. "Some of these NCDs (non-convertible debentures) are at 8% and upwards of 8%. So there when they go out of the books, my most of borrowing will definitely come down," the management said. 

In the September quarter, the company's finance cost rose to INR 49.95 billion from INR 48.80 billion a year ago, which weighed on its bottom line. The housing financier reported a net profit of INR 13.54 billion, up just 2% on year and down 0.4% on quarter.

The management also said that a complete relook at existing standard operating practices on project financing was needed and that the company will take a call on the same within the next 20 days.

"The attempt, let me tell you, will be to, I would say, simplify the process and not bring in obstructions, central sort of hindrances so that we can, our team, the project finance team can operate freely in the market and compete with banks who do not have any such restrictions," the management said. "We want to do business, but we want to do profitable business. So probably one of the influences we are facing is the BBB (ratings on a company) builders. So once we go down below 'BBB', I think we will get a larger chunk of builders who will be able to, who are willing to accept project loans at, say, 10%, 10.5%, 11%, etc. "

On Thursday, shares of the company ended nearly 4% lower at INR 570.45 on the National Stock Exchange. The company announced its earnings on Wednesday.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Srijita Bose and Shubham Rana

Edited by Akul Nishant Akhoury

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