Sundaram Home Finance Ltd. (SHFL), registered a 18% rise in its net profit for the December quarter over the year earlier period to ₹62 crore.
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Disbursements increased by 27% to ₹1,252 crore, the wholly owned subsidiary of Sundaram Finance said in a statement.
Assets under Management stood at ₹12,800 crore against ₹10,500 crore. The company hired over 500 people in the first nine months of the year.
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The newly opened Small Business Loans (SBL) segment recorded disbursements of over ₹90 crore and also opened 30 exclusive branches.
The company is currently in the process of foraying into the Affordable Housing Segment and plans to open up 10 branches in TN and hire up to 75 people for this segment in the initial phase.
“Tier 2 and 3 towns in the Southern Market remained strong in the first nine months of the year and continued to drive our disbursements growth. We opened over 20 branches in the smaller towns in the first nine months and will continue to expand in these geographies, going forward,” said Managing Director D. Lakshminarayanan.
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According to him, SHFL continues to see strong end-user demand and believe that this will remain strong in the near to medium term. Added to this, the growth in smaller towns is expected to be faster growth on the back of infrastructure development, thrust on housing and expansion of the SME segment.
“With our growing network in the Tier 3 and 4 towns, we are confident of leveraging this opportunity, both in the home finance space as well as the small business loans segment,” he said.
Currently, the company has 135 branches in the Southern region and in MP, Rajasthan, Maharashtra and Gujarat and is planning to add another 40 branches in the Home Finance, SBL and affordable housing segments in the near future.