LIC Housing Finance (LICHF) is planning follow-on public issue of Rs 500 crore in 2-3 months. Talking to reporters on the sidelines of announcement of the Q2 results of his company in Mumbai on Monday, LICHF?s director & chief executive, S K Mitter, said, ?The idea behind our plan to raise money through follow-on issue was to manage our cost of funds, which was 8.55% now as against the Q1?s figure of 8.68%.?
Also, it will enhance our equity capital as my company aims for a 28 % year-on-year growth in business for the next three years, he added.
Meanwhile, the company has registered a 53.26% growth in net profit at Rs 116.37 crore for the quarter ended September 30, as against Rs 75.93 crore a year ago.
The company has a comfortable capital adequacy ratio (CAR) position of 16 % as on September 30, 2007.
Union Bank may raise Rs 400 cr
The state-run Union Bank of India (UBI) is planning to raise a sum of Rs 400 crore in form of perpetual debt. However, talking g to the reporters on the sidelines of the launch of Union Super Salary Account (USSA) in Mumbai on Monday, the bank’s chairman & managing director MV Nair, clarified said, “We will think about raising the money if the situation warranted after the first half-year review of the annual monetary policy by the Reserve Bank of India on October 30.
The raising of money, in case it happens, will be in the form of perpetual debt, said Nair.
Talking about CRR, Nair said, ?CRR is not just a matter of interest rate hike signal, but it is liquidity management signal too.? On deposit rates, he said that it is likely to remain sticky. Pressure on margins will continue to be there for some more time on banks, said Nair.