Money & Banking

Sundaram Fin’s new top team to focus more on existing biz segments

Our Bureau Chennai | Updated on February 05, 2021

Q3 profit grows 45% at ₹242 crore

 

Sundaram Finance on Friday indicated that the new management team would ensure business continuity and stay focussed on growing in the existing business segments while preserving the values and ethics of the organisation.

From April 1, the company will have a new top deck as the present Managing Director, TT Srinivasaraghavan, completes his term on March 31, 2021 after serving the company for 38 years (the last 18 years as MD). He will continue as a mentor.

Rajiv Lochan, Director of Strategy, will take over as the new Managing Director and Harsha Viji, now Deputy MD, will assume charge as Executive Vice-Chairman, while A N Raju, Director of Operations, will become assume the role of Deputy MD.

While discussing the December 2020 quarter performance, the new team vowed to maintain delivery of ‘superior Sundaram experience’ in its line of business.

Srinivasaraghavan said there would be immense opportunities for Sundaram Finance to grow in its existing diversified business instead of chasing anything new. “Our market share in areas like car (financing) is very small. Even 1 or 2 per cent increase means a lot. Similarly, we are just 8–10-year-old in tractors and construction equipment lending business. There is a huge headroom for growth in these areas,” he added.

He also pointed out that running an NBFC business would be more challenging in the present scenario than it was a couple of decades ago though new growth opportunities have opened up.

Sundaram Finance reported a 45 per cent rise in its net profit for the quarter ended December 31, 2020 at ₹242 crore compared to ₹167 crore registered in year-ago period.

Disbursements for Q3 went up 8.5 per cent to ₹4,307 crore (₹3,968 crore). Net income was higher by 7 per cent at ₹1,045 crore (₹976 crore). Assets under Management grew to ₹31,226 crore as on December 31, 2020 (₹30,502 crore as on December 31, 2019). Net NPA (Stage III) as on December 31, 2020 stood at 1.59 per cent (2.79 per cent).

The deposit base stood at ₹4,112 crore December 31, 2020 (₹3,722 crore a year ago).

“Compared to the scenario in the first two quarters of the year, Q3 saw a revival. We expect the growth momentum to pick up in the next few quarters,” said Srinivasaraghavan.

 

Published on February 05, 2021

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