Tag: LIC Housing

India Post Payments Bank, LIC Housing tie up to sell home loans, BFSI News, ET BFSI

Banking & Finance

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India Post Payments Bank (IPPB) has joined hands with LIC Housing Finance for selling housing finance products of the latter to its 4.5 crore customers, a statement said on Tuesday.

Through its robust and extensive network of 650 branches and more than 136,000 banking access points, IPPB will make LIC Housing Finance Ltd’s (LICHFL) home loan products accessible to its customers pan-India, the statement said.

Under the strategic partnership, credit underwriting, processing, and disbursement for all home loans will be handled by LICHFL, while IPPB will source the loans.

The alliance with LICHFL is part of IPPB’s strategy to expand its range of products and services, and to cater to the banking and financial needs of diverse customers, especially unbanked and underserved, across the country.

IPPB already distributes general and life insurance products through partnerships with insurance companies. Credit products are natural extension for the customers at the last mile, the statement said.

IPPB has an on-ground workforce of nearly 200,000 postal employees (postmen and Gramin Dak Sevaks) equipped with micro ATMs and biometric devices for doorstep banking. This will play a significant role in offering LICHFL’s housing loans.

“Easy access to credit for buying a house is an important prerequisite towards achieving inclusive growth. The partnership with LICHFL is a significant tie-up in IPPB’s journey to become one of the largest platforms for availing credit products by our customers for meeting various needs,” J Venkatramu, MD & CEO, India Post Payments Bank said.

LIC Housing Finance MD & CEO Y Viswanatha Gowd said the strategic MoU with IPPB will help the company to further deepen the market penetration.

“It will enable us to increase LICHFL’s home loan product outreach in untapped geographies across the country. With an unmatchable presence of post offices, we see this strategic partnership as a significant step that will help our long-term business growth and improve our market share,” he said.

LIC Housing Finance offers home loans starting from 6.66 per cent for loans up to Rs 50 lakh for salaried individuals.



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Chakri Lokapriya, BFSI News, ET BFSI

Banking & Finance

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SBI’s credit costs have come down and it looks like SBI has executed well, given the tough macro environment. The Covid related provisioning are largely within expectation and gives comfort that numbers for other banks will also hopefully be in line or better, says Chakri Lokapriya, CIO & MD, TCG AMC.

Just looking at SBI’s performance, the big takeaway from the numbers is the asset quality outcome, the fact that they have managed to brave the Covid-19 second wave impact. Slippages have come in at 2.47%, of which, a significant amount has already been pulled back in July. Do you think that is something that is going down well with the street?
It is absolutely right because going into the quarter, the economic backdrop had the services economy still in a contraction while the manufacturing sector was moving by stops and starts. There was a fear that slippages would increase from industries that take loans from SBI.

Now those slippages are under control. The 15,600 odd crore mark is a good number. Secondly, we know that credit growth is unlikely to pick up any time soon. The number reflects that 5% to 6% range whereas the deposit growth continues to remain strong. SBI’s credit costs have come down and it looks like SBI has executed well, given the tough macro environment. The Covid related provisionings are largely within expectation and gives comfort that numbers for other banks will also hopefully be in line or better.

Would a long-term investor be willing to buy the stock at the current levels?
Absolutely. The stock at the current levels still trades only at about close to its book value around one time for the medium to longer term investor. For a franchise as strong and big as SBI, one in four or five loans in this country is made by SBI.

Today whether it is corporate banking, retail banking or the government borrowings from banks, SBI has executed well. So even without multiple re-rating, the stock can go much higher. At this current rate it will probably hit north of Rs 600 in less than about a year’s time from now.

What are your views on HDFC Ltd?
After long underperformance due to slowing loan growth etc, hopefully things will improve for HDFC if there is no third wave. Also coming out of the current lockdowns, home loan growth rates are picking up while other forms of borrowing or lending has still not picked up. That is reflected both in the volumes of real estate companies as well as by the housing finance companies. I think given its underperformance, HDFC being the market leader along with LIC Housing and Repco, could do well in the next couple of quarters



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