Business

Sundaram Home Finance net surges 36%

Sundaram Home Finance Ltd., the wholly owned subsidiary of Sundaram Finance Ltd., reported third quarter net profit grew 36% to ₹56.24 crore.

Disbursements during the quarter stood at ₹416.57 crore compared to ₹536.33 crore in the year-earlier period. The deposit base stood at ₹1,825 crore, the company said in a statement.

“There is a shortage of houses and the pent-up demand is huge,” said Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance.

“Our outlook is positive. Our focus will continue to be on the southern market as that offers huge opportunities,” he added.

He also said they had seen a revival of real estate markets across major metros as well as smaller towns, while a few States had also driven demand revival through a reduction in stamp duty and premium. In addition, builders/developers had softened prices to liquidate stock.

Stating the company was nearing pre-COVID-19 level in terms of new business, he added that was a positive sign of growth returning. Interest rates were also at an all-time low, which was quite unprecedented for the home buyer.

“We are witnessing renewed interest from builders in terms of new launches, across locations,” he said.

“From a residential-housing perspective, demand for ready-to-move-in homes is the first one to take off. Affordable housing segment continues to grow at a fast pace with the demand continuing to be quite attractive,” he said.

During the nine months of FY21, the company raised more than ₹3,600 crore through a mix of debt instruments, term lending from banks, fixed deposits and refinance from the NHB.

On Budget wish list for the real estate sector, he said he was looking forward to an increase in interest subsidy on home loans, infrastructure status for all residential projects in tier 2 and tier 3 towns to boost demand and a greater push to employment generation to aid housing demand.

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Printable version | Feb 24, 2021 11:59:01 PM | https://www.thehindu.com/business/sundaram-home-finance-net-surges-36/article33661866.ece

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