Sundaram Home Finance has unveiled plans to raise over ₹6,000 crore to accelerate its growth during the current financial year.
The funds proposed to be raised would be through a mix of refinance from NHB, bank debt, debentures and fixed deposits, an official said.
Sundaram Home Finance reported a 26 per cent rise in its net profit for the January-March 2025 quarter to ₹71.57 crore from ₹56.80 crore registered in the corresponding quarter of last financial year.
Disbursements made during the quarter under review stood at ₹1,929 crore as against ₹1,469 crore registered in the corresponding quarter of last financial year.
The Assets Under Management during the financial year ending March 31, 2025 went up to ₹17,470 crore from ₹13,812 crore registered in the year ago period.
On the outlook for the financial year, the Chennai-headquartered company's MD D Lakshminarayanan said, "The emergence of small towns as an economic growth drive is throwing up a lot of new growth opportunities for us both in the prime home finance segment as well as the emerging business segment. We believe that the demand outlook remains positive in the real estate space and we will continue to invest in branch expansion and people this year."
"While we consolidate our presence in the larger cities, we believe that our growth this year will be driven by new expansion into more Tier II and III towns and further strengthening our presence in existing locations in smaller towns," he said in a company statement on Tuesday.
The Emerging Business segment of the company has made disbursements of ₹229 crore for the year ending March 31, 2025. This segment comprises small business loans and affordable housing finance registered a solid growth in FY2025 on the back of network expansion in Tamil Nadu.
"The Emerging Business segment has kicked off well in the first phase and we were able to register an over 60 per cent growth in disbursements last year on the back of branch expansion in small towns in TN. We will now look for growth opportunities through expansion outside Tamil Nadu in the emerging business segment this year," he said.
"We are confident that the emerging business segment will grow faster this year on the back of our network expansion," he added.