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Sundaram Home Finance (SHF) plans to raise ₹2,000 crore during the second half of this fiscal through a mix of debt instruments and bank funding in order to fund its growth plans.
“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,” said Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance.
Sundaram Finance posts ₹192-crore profit in Q2
“While the sales cycle is taking a bit longer, the home loan enquiries in October have reached the same level as last year,” he added.
Demand pick-up
In the first half of the year, SHF had seen demand pick up from the non-metro towns and hopes that there is room to grow its business in these markets. It plans to raise ₹2,000 crore in the next six months to fund the growth plans.
The company’s deposits saw good growth in the first half of the year and stood at ₹1,742 crore at the end of September 2020, with a net accretion of about ₹140 crore.
Lakshminarayanan said SHF would continue to expand its presence in the four southern States, especially in tier-two and tier-three towns.
He is of the view that the 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,” he added.
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