Sundaram BNP Paribas Home Finance increases net profit and disbursement

City-based Sundaram BNP Paribas Home Finance Company Ltd Saturday said it has increased its loan disbursements and net profit by eight percent and 12 percent respectively during the first half of the current fiscal.

In a statement issued here, the company said it has disbursed Rs.1,338.73 crore and posted a net profit of Rs.70.17 crore during the first half of the current fiscal as against Rs.1,243.77 crore disbursement and Rs.62.56 crore net profit posted during the previous year's first half.

The company was silent on the income earned on its operations.

According to the company, the overall negative sentiment in the economy coupled with the recent agitation in Andhra Pradesh has been slowing down the pace of the overall home loan growth.

"We believe that with leading real estate players moving to tier II and tier III cities of Tamil Nadu, the long term outlook remains positive.

"However, despite the opportunities in the real estate sector, the immediate and near term growth outlook is expected to be sluggish on account of economic slowdown, weak employment scenario and high inflation," the statement quoted managing director Srinivas Acharya as saying.

"We are hopeful that the Andhra Pradesh market, which is an important driver for our growth, will recover in the 2nd half of the year. Simultaneously, we will continue to explore opportunities to increase our presence in central and western India," Acharya said.