Rating agency Crisil has upgraded the fixed deposit (FD) rating of Sundaram BNP Paribas Home Finance Ltd. to ‘FAAA’, the highest rating, with stable outlook.
Sundaram Home Finance has a deposit base of over ₹1,000 crore and close to 20,000 depositors. The company is looking to raise ₹2,000 crore this year to fund its growth plans through a mix of various funding instruments. Deposits contribute to about 15% of the total funding mix.
The rating factors in the support the company gets from Sundaram Finance Ltd. in terms of business support and management inputs.
‘The upgrade in rating recognises the inherent strength of the company and growth opportunities. The company is seeing good growth in new home loan disbursements this year. With this upgrade, we expect to further increase our deposit base as part of our fund raising plans,’’ said Srinivas Acharya, MD, Sundaram BNP Paribas Home Finance.
Sundaram Home Finance had registered a home loan disbursements growth of 32% in Q2 this year, and is continuing to witness good traction in the home loan segment in Q3 as well.
Sundaram BNP Paribas Home Finance Ltd is a 50.1% - 49.9% joint venture between Sundaram Finance Ltd. and BNP Paribas of France.
