Sundaram Home Finance Targets Rs 400 Cr Disbursements in Emerging Business

Chennai, Feb 25 (PTI) Sundaram Home Finance has set a target to double its business under the Emerging Business segment to Rs 400 crore over the next 12 months, a top official said.

The company, a wholly owned subsidiary of non banking finance company Sundaram Finance Ltd, has set up over 40 branches in Tamil Nadu under this segment and recently forayed into Andhra Pradesh market with the inauguration of five branches. It also has plans to enter Telangana in the next phase of growth.

The Emerging Business (EB) comprises small business loans of up to Rs 20 lakh and affordable housing finance where the company offers loans up to Rs 35 lakh.

"Our immediate plan is to stabilise and strengthen the branch network in TN and AP and register a good growth through the existing branches in these two states. After we consolidate our current branch network in TN and AP, we expect the next set of branches to come up faster. In the next phase of growth in the EB segment we will look to expand into Telangana. We believe that the EB segment has solid potential to grow. We have crossed the Rs 200 crore mark in disbursements and are confident of doubling this in the next 12 months," Sundaram Home Finance MD D Lakshminarayanan said in a company statement here on Tuesday.

The city-headquartered company has an employee base of over 300 people under the emerging business vertical.

"While we continue to consolidate our presence in Tier II and III towns in TN, the next phase of growth in the EB segment would be driven by expansion in AP and Telangana," he added.

Sundaram Home Finance made an overall disbursements of Rs 1,692 crore for the October-December 2024 quarter registering a 35 per cent growth over the corresponding period of last financial year.