Industry

Sundaram HF arm to raise ₹2,000 crore

Sundaram Home Finance, the home finance subsidiary of Sundaram Finance Ltd., is planning to raise ₹2,000 crore in the second half of the current fiscal through a mix of debt and bank borrowings to fund its growth plans.

“After a nervous start to the year, we have been witnessing some green shoots in the last two months in the housing sector, especially in Tier-II towns in south India,” Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance, said in a statement.

“While the sales cycle is taking a bit longer, the home loan enquiries in October have reached the same level as last year,” he added.

“We will continue to expand our presence in the four southern states, especially in the Tier-IIand Tier-III towns. In the first half of the year, we had seen demand pick up from the non-metro towns and think that there is room to grow our business in these markets. We plan to raise ₹2,000 crore in the next six months to fund our growth plans,” he added.

During the first half of FY21, the company’s deposits registered good growth and stood at ₹1, 742 crore, with a net accretion of around ₹140 crore.

On the outlook for the home finance space, he said, “housing segment is still under penetrated in the country. Given this scenario, I believe that housing finance as a space will continue to grow. This pandemic will further drive home the need for home ownership and we will see growth in satellite towns.”

Sundaram Home Finance has 115 branches across the country and provides home loans, plot loans, home improvement and extension loans and loans against property.

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Printable version | Apr 21, 2021 8:50:37 PM | https://www.thehindu.com/business/Industry/sundaram-hf-arm-to-raise-2000-crore/article33077883.ece

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