Sundaram BNP Paribas Home Finance, a joint venture between Sundaram Finance (50.1 per cent) and BNP Paribas (49.9 per cent), has reported a 19 per cent increase in its net profit for the year ended March 2014 to Rs.151 crore from Rs. 126 crore in the same period previous year.
Home loan disbursements for the year went up 13 per cent to Rs.1,740 crore (Rs. 1,543 crore). Non-housing loan disbursements (financing against mortgaged house properties), however, dropped by 27 per cent to Rs.753 crore (Rs.1,029 crore). Since the company consciously decided to go slow on the non-housing loans business, the overall disbursements were down by three per cent to Rs. 2,493 crore (Rs. 2,572 crore).
The net non-performing asset (NPA), as on March 31, 2014, stood at 0.46 per cent, up from 0.23 per cent. The company’s net worth stood at Rs.698 crore as on March 31, 2014.
Addressing a press conference here on Tuesday, Srinivas Acharya, Managing Director, Sundaram BNP Paribas Home Finance, said, “It has been quite a challenging year for us.The 13 per cent growth in home loans disbursements in challenging market conditions were driven by our strong presence in various locations in the South market, and the increased investment in manpower.’’
The company, he said, was looking at a 10 per cent growth this year.
Fielding a range of questions, he said the two shareholders had brought in Rs. 80 crore through equity in March this year. They had invested Rs.100 crore in the previous financial year.
To a question, he said Sundaram Home Finance would raise Rs. 3,800 crore this year, including about Rs. 1,400 crore through non-convertible debentures and Rs. 670 crore through issue of commercial paper. It would access NHB (National Housing Bank), sub-ordinate debt and term-loans to raise the remaining fund needs, he added.
“We can access ECB (external commercial borrowings) from this year onwards. The company could look at ECB route to fund-raising. This will, however, depend on the exchange rate fluctuation,’’ he said. The choice of ECB would be driven by overall cost of funding, he added. To a specific query, he said the company could look at financing builders by the end of this year. He also said delays in approval and lack of an organised funding window for builders were the two main challenges facing the sector.