Mumbai:
Setting a target of Rs one lakh crore of business by 2030, GIC Housing Finance(GIC HF), the housing subsidiary of the state owned reinsurer GIC Re, is appointing a consultant to restructure its operations.
Speaking to the Asia Insurance Post, S Gopakumar, Managing Director & CEO, GIC HF, who will soon be joining United India Insurance( UII) as a general manger and director, said,“We intend to reach an AUM at Rs 1 lakh crore. We are on the verge of appointing a management consultant.Once appointed, the consultant will help us to achieve our long term growth.’’
The company has been doing well for past three –four years except during period of the demonetaisation. added Goprakumar.
“When I took over, the company’s loan book size was at Rs 9,000 crore and that has now grown to Rs 11,500 crore. Government’s ongoing Pradhan Mantri Awas Yojana( PMAY) has helped us increased the business. In fact the scheme has generated lots of demands. Apart from it, greater teamwork within the organization also helped us achieve the outcome,’’ he said.
During 2017-18 . the GIC HF's disbursements grew by 30 per cent, asset under management (AUM) rose by more than 20 per cent, profit after tax (PAT) went up by 23 per cent and profit before tax (PBT) also increased by 20 per cent.
As on 31 March, 2018 the company’s non-performing assets(NPA) stood at 0.2 per cent, whereas its gross NPA was at 2.4 per cent.
The company that has added 10 branches in the last two years, will be adding another five -seven branches during the current year. At present it has around 70 branches.
“We are recruiting people directly from management schools. Last year, we recruited 30 such executives,’’ said Gopa Kumar.
Out of its total borrowings annually, GIC HF raises 34 per cent from National Housing Bank (NHB), 50 per cent from commercial banks and 15 per cent throughcommercial papers.
Meanwhile, Neera Saxena, general manager, UII has already been posted as the new MD & CEO of GIC HFand is likely to take over in the first week of August.