Sundaram Home Finance Targets Rs 300-Crore Disbursal In Emerging Business Segment

Sundaram Home Finance has launched an "emerging business" vertical on Wednesday with which it targets to disburse Rs 300 crore during the ongoing financial year as part of its diversification strategy.

The company, a subsidiary of Sundaram Finance Ltd., said the segment will include the small business loans and affordable housing finance verticals.

Lakshminarayanan Duraiswamy, managing director of Sundaram Home Finance, said he plans to inaugurate 20 branches in the segment across Tamil Nadu, Telangana, and Andhra Pradesh. "We plan to hire around 200 people for this segment, largely front-end staff," he said.

"We had forayed into small business loans financing in October 2022 and the response over the first 18 months has been quite satisfactory with the company having disbursed over Rs 125 crore... We felt the affordable housing financing has similar contours in terms of the loan amount, customer profile, market segment and geographies," Duraiswamy said in a statement.

"We believe that together the emerging business team can jointly cater to this growing segment of affordable housing and small business loans," he said.

Sundaram Home Finance will now have two business divisions—the traditional housing finance business under the 'prime housing' market and the 'emerging business' segment focusing on small business loans and financing to the affordable housing segment.

Duraiswamy said the company sees a lot of potential for both the businesses, and "these could turn out to be solid growth drivers for the company in the coming years".

"This segment will start off with the current set of 31 branches and around 300 employees," he said.

Lakshminarayanan said the company aims to disburse around Rs 300 crore in the emerging business segment this financial year.

Sundaram Home Finance reported a net profit of Rs 236 crore, with disbursements totaling Rs 5,039 crore for the fiscal ending March 31, 2024.

(With Inputs From PTI)