Sundaram Home Finance to raise Rs 2,000 crore through debt and bank funds

The home finance subsidiary of Sundaram Finance Ltd may raise around Rs 2,000 crore in the second half of the year through a mix of debt instruments and bank funding.

Sundaram Home Finance, Managing Director, Lakshminarayanan Duraiswamy 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 enquires in October have reached the same level as last year.”

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In the first half of the year, the company’s deposits registered a good growth and stood at Rs 1,742 crore at the end of September 2020, with a net profit of Rs. 140 crores. Duraiswamy commented, “the company will continue to expand its presence in the four southern states, especially in tier two and tier three towns.”

The company witnessed a rise in the demand from the non-metro towns while projecting a scope of growth for the business. The company is planning to raise Rs 2000 crore in the second half for expansion.

Lakshminarayanan Duraiswamy said the housing segment is still in a primitive stage in our country. The housing finance as space will continue to grow, and the pandemic has pushed the need for homeownership. The growth will be seen in the satellite town.

There are 115 branches of Sundaram Home Finance across India, and it provides home loans, plot loans, home improvement and extension loans, and loans against property.