Sundaram Home Finance steadily increasing presence outside South India: MD

Chennai, Jul 30 (PTI) Sundaram Home Finance is in the process of steadily increasing its presence outside the southern parts of the country, a top official of the company has said.

The company, a wholly-owned subsidiary of Sundaram Finance Ltd, has registered a 16 per cent increase in its net profit for the April-June 2024 quarter at Rs 66.38 crore.

The city-based company had registered a net profit of Rs 57.42 crore during the corresponding period last year.

Disbursements made during the June-quarter went to Rs 1,353 crore, up by 24 per cent from Rs 1,094 crore registered in the same period a year ago.

The Assets Under Management as of June 30, 2024 stood at Rs 14,533 crore as compared to Rs 11,699 crore as on June 30, 2023.

Commenting on the financial performance, company Managing Director D Lakshminarayanan said, “Our disbursements growth in Q1 continued to be driven by market expansion in smaller towns and additional business from new branches.”

“We will look for newer opportunities in tier 3 and 4 towns while we continue to strengthen our presence in the southern markets and in tier II towns. We are also in the process of steadily increasing our presence in select geographies outside South India,” he said in a company statement on Tuesday.

On the launch of its ‘Emerging Business’ segment, the company said it has 40 dedicated branches for this business and it plans to open an additional 20 branches in Tamil Nadu and Andhra Pradesh in the near term and recruit about 200 people.

The ‘Emerging Business’ segment is a new business venture comprising affordable housing financing and loans to small business.

“Buoyed by the budget announcement of the government’s push on affordable housing, we are excited about the prospects of our growth in the affordable housing segment. This new segment combined with the small business loans is expected to register faster pace of growth in the medium term,” Lakshminarayanan added.

In April 2024, Sundaram Home Finance expanded its presence outside the southern market with a new office in Kota taking the total branch network to five in Rajasthan.