LIC housing finance share price decreased

LIC Housing Finance share price which took a big loss of 11.5% after the recent corporate loan scams, finally rebounded with a 3.5% climb. The price of the LIC Housing Finance today opened at Rs 1086.

Yesterday, many top officials from banks and financing firms were arrested for taking bribes to grant corporate loans. It is also reported that the Chief Executive of LIC Housing Finance, Ramachandran Nair,is also arrested. LIC is likely to suspend the CEO and the Investment Secretary, Naresh K. Chopra.

The officials were arrested on the allegations that they were working with loan arranger firm MoneyMatters and overlooked regulatory guidelines and worked for monetary gains while approving and sanctioning loans to large corporate firms.

Meanwhile, LIC will be announcing its new Chief Executive for LIC Housing in a few days time. LIC will also consider an internal enquiry regarding the arrest of its senior officers in connection with a multi-crore housing scam.

Mr Vijayan, LIC Chairman told that the CBI has requested for some files which are related to the loans which are extended to some housing companies and the outstanding amount from these companies amount to Rs 380 crores.

Some of the real estate companies which have come under CBI scanner due to the scam includes Mantri Realty, Kumar Developers, DB Realty, Emaar MGF and Lavasa Corporation.

Posted by musicking on Nov 25 2010. Filed under Business news. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry