Sundaram BNP Paribas Home Finance (SBPHF) is in talks with smaller housing finance companies (HFCs) to buy their portfolio in the affordable housing space. The company is in advanced stages of discussion with a company in this space. The deal size is expected at about Rs.11 crore.
“In the affordable housing space, small HFCs have developed strong expertise in lending and recoveries. As part of plan, they will originate the loans and we will then take over. We could look at doing around Rs. 50 crore this year in this ‘portfolio buying’ space. Recoveries are excellent in this. We also believe that there is potential to do Rs.600-700 crore of portfolio deals for a full year,” said Srinivas Acharya, Managing Director, SBPHF.
SBPHF posted 11 per cent rise in net profit at Rs. 36.11 crore for the quarter ended September 30, 2014 as against Rs.32.62 crore in a year-ago period. Income stood at Rs.238 crore as against Rs.215 crore. Disbursements fell to Rs.537 crore as against Rs.685 crore.
Mr.Acharya said the realty market was sluggish during H1. However, H2 is expected to be better and the company is looking at 10 per cent growth for the fiscal.
