TRIBHUWAN ADHIKARI, managing director and chief executive officer of LIC Housing Finance — a deposit-taking, upper-layer non-banking financial company (NBFC) — discusses the strategy to reduce non-performing assets (NPAs) in an interview with Manojit Saha. Edited excerpts:
The Reserve Bank of India (RBI) has recently stated that NBFCs and housing finance companies should reduce their dependence on banks for funding. What percentage of your funds come from banks?
Regarding LIC Housing Finance, only 32 per cent of our borrowings are from banks. We operate as a deposit-taking NBFC. Most of our funding comes through non-convertible debentures, accounting for approximately 52-53 per cent of our funding.