LIC Housing Finance said that it would seek shareholders’ approval to raise a capital of Rs 50,500 crore through issuing Non-convertible debentures(NCDs) or other hybrid instruments.

Due to COVID-19 pandemic, the company’s annual general meeting (AGM) is scheduled on September 28, 2020, and will take place through video conference and other audio-visual means. Company in a regulatory filing said, “special resolution, authorising the board of directors to issue NCDs and/or any other hybrid instruments which can be classified as being Tier II capital under the provisions of the Housing Finance Companies (NHB) Directions, 2010, up to an aggregate amount not exceeding Rs 50,500 crore on a private placement basis”. It added that the issued NCDs might be either at par or premium or a discount to face value, which depends upon the prevailing market conditions at the time of issues.

LIC Housing Finance standalone revenue for the June-end quarter of the current year stood at Rs. 4050.95 crores, reporting an 11% increment as against Rs. 3648.24 crores. Net Interest Income (NII) witnessed a 6.6% year on year growth at Rs. 994 crores. Profit Before Tax (PBT) for the quarter under review increased by 20% to Rs. 788.4 crores as against Rs. 654.5 crores in the same period of the previous fiscal year. Net Interest Margin for the June-end quarter stood at 2.34%, posting a decline from 2.52% for the corresponding period of the last year.