Vinay Shah, MD and CEO, expects net interest margin to improve from current level of 2.35 percent.
LIC Housing Finance posted a 12 percent rise in its September quarter net profit. Vinay Shah, Managing Director and Chief Executive Officer (CEO) of the company, spoke to CNBC-TV18 about the earnings and business plans.
Shah said that incremental cost has gone up. Last year Q2, it was in the range of 7.45 percent and currently it’s at 8.07 percent.
“If the rates go up further we will have to pass it on to the borrowers and the decision of when to do it, how much to do it will be taken at that point of time,” Shah said on October 30.
Shah expects net interest margin to improve from current level of 2.35 percent.
On the growth front, Shah said, “At the start of the year we were targeting growth rate in excess of 17-18 percent and probably we should cross that and same for portfolio growth also, we would like to see it in excess of 16-17 percent.”
“FY20 will much depend on the general sentiment around whole of the realty sector but it should continue at this level if not increase more but it should continue at this level of more than 15-16 percent for FY20 also,” he added.