Promoters of Sundaram Home Finance infused Rs 80 crore

Company plans to raise Rs 3,800 crore through different modes

Sundaram Finance and BNP Paribas, the two main shareholders of Sundaram BNP Paribas Home Finance, have infused Rs 80 crore into the company. Sundaram Home is also planning to enter builders financing by the end of this year.

Srinivas Acharya, Managing Director, Sundaram BNP Paribas Home Finance said that the two main shareholders have invested around Rs 80 crore in March 2014.

He also said that the company would raise Rs 3,800 crore this year through a mix of term loans, NCDs, commercial papers and refinancing from NHB. The company could look at ECB route to fund raising but this would depend on the exchange rate fluctuation.

He added, the company would look at financing builders by the end of this year.

On the performance, he said, company's net profit for the year ended March 31, 2014 increased by 19 per cent to Rs 151 crore from Rs 126 crore.

Home Loan Disbursements up by 13 per cent to Rs 1740 crore from Rs 1,543 crore, while the non-housing loan disbursements (financing against mortgaged house properties) dropped by 27 per cent to Rs 753 crore from Rs 1,029 crore registered in the previous year.

"As a conscious and prudent lending policy, the company consciously decided to go slow on the non Housing loans business. The overall disbursements were down three per cent to Rs 2,493 crore from Rs 2,572 crore the previous year," he said.

Sundaram Home Finance's Net NPA as on March 31, 2014 stood at 0.46 per cent (previous year 0.23%).

Commenting on the performance, Acharya said, "it has been quite a challenging year for us. The overall slowdown in the economy reflected in the lower demand in the real estate space. Despite this, our core home loans business grew by a healthy 13 per cent this year."

The company expect some revival in the economy over the next two quarters and consequently the real estate sector should see an uptick in demand in the second half of the year.

Despite the current challenges and uncertain market conditions, the company is looking at 10 per cent growth this year and plans to open 20 new branches this year including in Gujarat and Rajasthan.