Sundaram Home Finance hopeful of continuing growth momentum

Chennai: Sundaram Home Finance expects the growth momentum to continue in the current financial year and would focus expansion into smaller towns, a top official has said.

The city-based company, a wholly owned subsidiary of Sundaram Finance Ltd would also be exploring opportunities in Tier 4 towns in South India, Managing Director Lakshminarayanan Duraiswamy said.

"Given that the small towns in the South Market are seeing a good pace of growth on the back of increased affordability, we continue to be positive on the outlook for the real estate sector and are hopeful that the growth momentum will continue," he said in a statement.

"Our focus will be to penetrate deeper into smaller towns. We will also look at exploring opportunities in Tier 4 towns in South India and expect these new locations to drive our growth this year," he said.

On the expansion drive launched in Maharashtra and Rajasthan, he said the company would continue to identify pockets of growth opportunities and steadily strengthen the base in West and Central India.

Sundaram Home Finance which forayed into the small business loan segment (up to Rs 20 lakh) has opened 30 exclusive SBL branches in Tamil Nadu with disbursements of over Rs 125 crore.

Earlier in the day, Sundaram Home Finance reported a net profit of Rs 57 crore for the quarter ending March 31, 2024 as compared to Rs 65 crore registered during the same period of last year.

Disbursements during the quarter under review surged by 20 per cent to Rs 1,469 crore, from Rs 1,222 crore registered in the corresponding quarter of last year.