GIC HOUSING FINANCE Share price

GIC Housing Finance Limited (GICHF) was incorporated as "GICGRIH VITTA Limited" on 12th December 1989. The Company wasissued Certificate for Commencement of Business dated 12thJanuary 1990. It acquired its present name vide freshCertificate of Incorporation issued on 16th November 1993. TheCompany was formed with the objective of entering in the fieldof direct lending to individuals and other institutions toaccelerate the house building activities in the country.The Company was promoted by General Insurance Corporation ofIndia and its subsidiaries namely National Insurance CompanyLtd. The New India Assurance Company Ltd. The OrientalInsurance Company Ltd. & United India Insurance Company Ltd.together with Unit Trust of India The Industrial Credit andInvestment Corporation of India Industrial Finance Corporationof India Housing Development Finance Corporation and StateBank of India.The primary business of GICHF is granting housing loans toindividuals and to persons engaged in construction ofhouses/flats for residential purposes.During the year 1993-94 GICHF sanctioned loans of Rs.41.03crores (Previous Year: Rs.37.37 crores) and disbursed loans ofRs.34.81 crores (Previous Year: Rs.33.40 crores). Cumulativeloan approvals and disbursements were Rs.106.87 crores and Rs.81.02 crores respectively covering 9714 dwelling unitsthroughout the country.In the four and half years since its inception the Company hasgrown tremendously with sanctions increasing at a compoundedannual growth rate of 9.8%.The profitability of a housing company depends largely on itscost of debt. For 1992-93 the average cost of debt forcompanies in the industry was lowest for GICHF at 11.09%.(Source : Business India June 6-19 1994)GICHF has floated various schemes since inception to cater todiverse needs of potential borrowers. The salient features ofthe schemes are as follows :GIC Apna Ghar Yojana - Individual loans upto Rs.10 lacsNRI Housing Loans - Housing loans to NRIS upto Rs. 10 lacsEmployees Housing Scheme - Loans to Corporate Bodies for construction of staff quarters upto Rs.200 lacs per projectHousing Repair/Renovation - Individual loans uptoScheme Rs.50000/-Line of Credit through - Loans to Employees ofCompany Corporate Bodies.Line of Credit to Company - Loans to Corporate Bodies for onward lending to Employees as required by Company.Construction Finance Scheme - Loans to builders/devel- opers upto 50% of project cost.