Sundaram BNP Paribas Home Finance, the subsidiary of Non-Banking Finance Company Sundaram Finance Ltd, has reported a marginal rise in its second quarter net profit ending September 30, 2017 at Rs 40.31 crore.
The company recorded net profit at Rs 39.21 crore during the corresponding quarter of the last fiscal.
On home loan disbursements, the company witnessed a 31.4 per cent rise during the July-September 2017 quarter to Rs 439 crore from Rs 334 crore registered during year ago period.
“The strong 32 per cent growth in home loan disbursements in Q2 gives us the confidence that the worst may be behind the sector (in the industry)”, Sundaram Home Finance Managing Director Srinivas Acharya said.
While Andhra Pradesh, Karnataka and Kerala registered good growth, the most heartening news has been the growth of almost 40 per cent in Chennai market, he said.
On fund raising plans, company CFO G Sundararajan said: “We are planning to raise around Rs 1,500 crore in the second half of the (financial) year to fund the growth plans“.
“Around 70 per cent of this will be raised through debentures and short term market borrowings”, he said.
The company, which has over 110 branches across the country, plans to add 10 new during the year.
Acharya said the affordable housing segment would be the growth driver for the company in the second half of the year.
“We expect H2 (second half of the financial year) to be equally good and are targeting an overall growth of 20 per cent this year in home loan disbursements”, he said.
Sundaram BNP Paribas is a 50.1 per cent and 49.9 per cent Joint Venture between Sundaram Finance Ltd and BNP Paribas of France.