LIC Housing Finance : Foreign investors Shareholding Raise

Investors who dumped LIC Housing finance (LIC HFL) shares after the arrest of its former chief executive Mr. R.R Nair in November 2010, are flocking back and have made it to outperform bigger rival HDFC (Housing Development Finance Corporation) and the benchmark indices last year (2011).

Foreign investors now hold 49% of the LIC HFL, up from 40% in December 2010.

Mr.  V. K .Sharma, Chief Executive, LIC HFL said, "We will primarily be with the end-user, typical middle class. That is why even in this high interest rate regime, we have not felt the stress. Margin on retail is less, so my net interest margin will come down."

Mr. Vibhav Agarwal, Analyst, Angel Broking said, "The pedigree of the LIC HFL remains that it is an LIC company. It enjoys the trust factor of LIC. People have forgotten that event"