Sundaram BNP Paribas Home Finance, the home finance subsidiary of Sundaram Finance Ltd., is planning to raise about ₹1,500 crore to fund its growth plans, according to a top executive.
“We plan to raise around ₹1,500 crore in the second half of the year to fund the growth plans,” said G. Sundararajan, chief financial officer, Sundaram BNP Paribas Home Finance. “Around 70% of this will be raised through debentures and short-term borrowings.”
As part of the expansion plan, the company will be adding ten more branches this year. The company has registered a 2% increase in its net profit the for second quarter ended September 30 at ₹40 crore against ₹39 crore in the year-earlier period. Home loan disbursements rose 32% to ₹439 crore compared with ₹334 crore. “The strong 32% growth in home loan disbursements in the second quarter gives us the confidence that the worst may be behind the sector,” said Srinivas Acharya, managing director of the company.
Affordable housing
“While A.P., Karnataka and Kerala registered good growth, the most heartening news has been the growth of almost 40% registered in the Chennai market.
“We expect second half to be equally good.” More than 40% of the disbursements is in the affordable housing segment, he said adding this segment would continue to be an important growth driver during the second half of the year.
