Sundaram Home Fin to raise Rs 250 cr from NHB
Sundaram Home Finance, a joint venture between Sundaram Finance Ltd and BNP Paribas, plans to raise around Rs 250 crore from National Housing Bank (NHB). In the light of the increased disbursement needs, it received the sanction for long-term funding on October 1, according to Srinivas Acharya, managing director, Sundaram BNP Paribas Home Finance.
The deposit mobilisation, the other important source of funding, has also crossed a milestone, touching Rs 500 crore in the last quarter, he added.
The money will be utilised by Sundaram Home Finance as and when the company requires the resources. “It is an open-ended sanction and Sundaram can use it at any point they need,” said Acharya.
Meanwhile, the company has announced that it has upgraded its ‘spoke’ locations in South India into full-fledged offices, thus enabling a faster go-to-market and tapping into the business potential in these markets.
These spoke locations include Warangal, Guntur and Kakinada in Andhra Pradesh, Mangalore in Karnataka, and Namakkal, Vellore and Tiruppur in Tamil Nadu.
Acharya said that the network expansion in Karnataka and AP and the upgradation of a large number of ‘spokes’ into ‘hubs’ was “a reflection of the revival in the home finance market and the strong growth the company has seen this year.”
“While the Rs 20-lakh-plus segment is seeing an uptick, the big driver for us, especially in tier-2 towns, has been in the below Rs 20-lakh segment,” he said.
On the outlook for the second half, Acharya said, “With the upswing in the demand for new homes, Sundaram Home Finance has achieved disbursements of over Rs 540 crore in the first six months of the year, thus recording a growth of over 80 per cent compared to the same period last year. We are confident of achieving similar disbursements during the second half, while at the same time continuing to focus on maintaining the quality of the assets.”
Sundaram BNP Paribas Home Finance Ltd ended 2009-10 with disbursements of Rs 743 crore and a net profit of over Rs 27 crore.
Sundaram BNP Paribas Home Finance Limited is a 50.1percent - 49.9 percent joint venture between Sundaram Finance Limited (SFL) and the French banking major, BNP Paribas group.