To fund its growth plans, Sundaram Home Finance, the home finance subsidiary of Sundaram Finance Ltd., is looking to raise Rs. 2,000 crores in the second half of the year through a mix of debt instruments and bank funding.
Lakshminarayanan Duraiswamy, MD, 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.”
Growth in Deposit base
The company’s deposits registered good growth in the first half of the year and stood at Rs. 1,742 crores at the end of September 2020, with a net accretion of around Rs. 140 crores.
Fund Raising Plans
On the fund raising plans, Lakshminarayanan said: “We will continue to expand our presence in the four southern States, especially in the tier two and tier three towns. In the first half of the year, we had seen demand pickup from the non metro towns and think that there is room to grow our business in these markets. We plan to raise Rs. 2,000 crores in the next six months to fund our growth plans.”
Growth in Satellite Towns
On the outlook for the Home Finance space, Lakshminarayanan said: “Housing segment is still under penetrated in the country. Given this scenario, I believe that Housing Finance as a space will continue to grow. This pandemic will further drive home the need for home ownership and we will see growth in satellite towns.”
Sundaram Home Finance is a leading player in the housing finance sector in India. The company which has 115 branches across the country provides home loans, plot loans, home improvement and extension loans and loans against property.