Sundaram BNP Paribas Home Finance, the home finance subsidiary of Sundaram Finance, has reported a 35 per cent growth in its net profit at Rs. 126 crore for the year ended March 31, 2013, against Rs. 94 crore in 2011-12. Home loan disbursements registered a rise of 32 per cent to Rs. 2,572.38 crore from Rs. 1,948.12 crore.
The company has announced a higher dividend of 35 per cent against 25 per cent in the previous year.
Addressing presspersons here on Tuesday, Srinivas Acharya, Managing Director, said “Despite the overall uncertain market conditions that prevailed throughout the year, we were able to achieve strong home loan growth of 32 per cent driven primarily by our continued expansion in the southern markets and contribution from new locations in this region.”
For the current financial year, the company is targeting home loan disbursements of Rs. 3,100 crore. It has projected a growth rate of over 20 per cent on a larger base against the industry growth rate of 18-20 per cent. The company has an asset base of Rs. 6, 000 crore.
According to S. Rajagopalan, Vice-President and Head (operations), the company would be expanding its branch network to 150 offices by opening 50 more branches. Majority of this would be in South, he said.
G. Sundararajan, Chief Financial Officer, said the two joint venture partners — Sundaram Finance and BNP Paribas — infused fresh capital to the tune of Rs.100 crore during the year under reference.
The plan was to bring in additionally Rs. 100 crore in the current financial year, he said.