Sundaram Finance’s key arms put up impressive show in 2016-17

Leading NBFC Sundaram Finance’s subsidiaries engaged in mutual fund, general insurance and home finance businesses have reported impressive performance for 2016-17.

The mutual fund arm Sundaram Asset Management Company has reported a significant rise in its net profit at ₹ 30.73 crore in 2016-17 as compared to ₹4.42 crore in 2015-16. Its gross income grew by 13 per cent to ₹260.54 crore from ₹229.88 crore in the previous year, according to the latest annual report of Sundaram Finance.

The average assets under management amounted to ₹28,312 crore for 2016-17 as compared to ₹ 23,346 crore in the previous year.

For the quarter ended 31 March 2017, the company’s mutual fund business had a market share of 1.56 per cent of industry assets, placing the company in 14th place. The company’s market share was 2.40 per cent in equity assets, thereby occupying 12th position.

Royal Sundaram General Insurance reported a whopping growth in net profit at ₹43.05 crore for 2016-017 when compared with ₹26.70 crore in the previous year. Its gross written premium grew by 29.4 per cent at ₹2,205 crore as compared to ₹1,703 crore in the previous year.

The company has reported a good traction in growth of commercial business achieving better than market growth rates in fire and engineering portfolios.

It also achieved stronger growth in commercial motor segment, optimising volumes from distribution channels. The company’s market share stood close to two per cent.

Housing finance subsidiary Sundaram BNP Paribas Home Finance Ltd reported a marginal growth in its net profit at ₹154 crore (₹153 crore) on the back of drop in gross income, which stood at ₹923 crore as against ₹927 crore. Disbursements grew five per cent ₹1,831 crore (₹1,743 crore).

Sundaram Asset and Sundaram BNP Paribas Home announced a dividend of 35 per cent each on the paid-up capital of ₹20 crore and ₹101.25 crore respectively.