Sundaram BNP to focus on South

Sundaram BNP Paribas Home Finance is planning to expand and strengthen its presence in the four southern states this year. The housing finance subsidiary of Sundaram Finance said the housing market was in a recovery mode in these states and this was the right time to strengthen the presence.

The company will use the ‘hub-and-spoke’ model to expand as it enters the next phase of growth. Over the next year, the company will be specifically targeting Karnataka and Kerala markets. It expects contribution from these markets to rise from the current single digit levels, according to a company release. The expansion will include opening up new offices in Hubli, Mangalore and Mysore regions in Karnataka and in Kollam and Malappuram districts and the Tiruvananthapuram market in Kerala, among other locations in these two states.

In Tamil Nadu and Andhra Pradesh, the company plans to increase its penetration into Tier-II and Tier-III towns. As part of this growth strategy, the home finance company will also leverage the strong Sundaram Finance branch network and existing customer base to expand in these markets.

Sundaram BNP Paribas Home Finance is a 50.1-49.9 per cent joint venture between Sundaram Finance and the French banking major, BNP Paribas Group.