Sundaram Home Finance, the home finance subsidiary of Sundaram Finance Ltd., is planning to raise around Rs 2,000 crore in the second half of the year through a mix of debt instruments and bank funding.
Lakshminarayanan Duraiswamy, managing director, Sundaram Home Finance said, “After a nervous start to the year, we have been witnessing some green shoots in the last two months in the Housing Sector, especially in Tier two towns in South India. While the sales cycle is taking a bit longer, the home loan enquiries in October have reached the same level as last year.”
Company’s deposits registered good growth in the first half of the year and stood at Rs. 1,742 crore at the end of September 2020, with a net accretion of around Rs. 140 crore.
On fund raising, he said, the company will continue to expand its presence in the four southern states, especially in the tier two and tier three towns.
In the first half of the year, the company had seen demand pickup from the non metro towns and think that there is room to grow our business in these markets. The company plans to raise Rs 2,000 crore in the next six months to fund the growth plans.
On the outlook for the home finance space, Lakshminarayanan said, housing segment is still under penetrated in the country. Given this scenario, housing finance as a space will continue to grow. This pandemic will further drive home the need for home ownership and will see growth in satellite towns.
Sundaram Home Finance has 115 branches across the country providing home loans, plot loans, home improvement and extension loans and loans against property.