Sundaram BNP Paribas Home Finance to raise Rs 3,800 cr

Sundaram BNP Paribas Home Finance has proposed to raise Rs 3,800 crore during this financial year through a mix of term loans, non-convertible debentures and refinancing from National Housing Bank, a top official said today.
The company which would look at foraying into builder financing by end of this financial year, would also look at ECB route to its fund raising plans, Sundaram BNP Paribas Home Finance Managing Director Srinivas Acharya said.
Sundaram Home Finance will raise Rs 3,800 crore this year through a mix of term loans, NCDs, refinancing from NHB. The company could look at ECB route to fund raising but this would depend on the exchange rate fluctuation, he said.

For the year ending March 31, 2014, Sundaram BNP Paribas Finance registered net profit at Rs 151 crore, up by 19 per cent from Rs 126 crore registered during the same period of previous year.
Overall disbursements of the company slipped to Rs 2,493 crore for the period ending March 31, 2014 from Rs 2,572 crore registered during the same period of previous year, he said.
Home loan disbursements,which is the core business of the company, grew by 13 per cent to Rs 1,740 crore compared to Rs 1,543 crore registered during the same period of previous year.

However, non-housing loan disbursements which include financing against mortgaged house properties slipped by 27 per cent to Rs 753 crore from Rs 1,029 crore registered during the same period of previous year.

Net NPA of the company stood at 0.46 per cent for the year ending March 31, 2014 as against 0.23 per cent registered during the same period of previous year.
The company has declared a dividend of 40 per cent for the year ending March 31, 2014.
"It has been quite a challenging year for us. The overall slowdown in the economy reflected in the lower demand in real estate space," Acharya said.
On the outlook for the current financial year, he said "We expect some revival in the economy over the next two quarters and real estate sector should see an uptick in demand during the second half of this year," he said.

He said the company plans to open 20 new branches this year in Gujarat and Rajasthan.