Sundaram Home plans branch network ramp-up to boost new businesses’ growth
Sundaram Home Finance plans to strengthen its focus on new business segments with the ramp-up in the branch network.
Currently, the company has 135 branches in the Southern region and other states such as Madhya Pradesh, Rajasthan, Maharashtra, and Gujarat.
The company continues to see strong end-user demand and believes that it will remain this wayin the near to medium term. Also, it expects smaller towns to register faster growth on the back of infrastructure development, thrust on housing, and expansion of the SME segment.
It is planning to add another 40 branches meant for home finance, SBL (small business loan), and affordable housing businesses in the near team.
“With our growing network in the Tier 3 and 4 towns, we are confident of leveraging this opportunity, both in the home finance space as well as the small business loans segment,” said Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance.
Sundaram Home has witnessed good growth since its foray into the small business loan (SBL) segment in October 2022. It has opened 30 exclusive SBL branches and recorded disbursements of over ₹90 crore during this period. The company is looking to open another 20 branches in TN and Telangana for SBL business in the near term.
In the affordable housing segment, the company plans to open 10 branches in TN and hire up to 75 people for this segment in the initial phase.
“Tier 2 and 3 towns in the Southern Market remained strong in the first nine months of the year and continued to drive our disbursements growth. We opened over 20 branches in the smaller towns in the first nine months and will continue to expand in these geographies, going forward,” he added.
Overall, the company hired over 500 people in the first nine months of this fiscal.
For the quarter ended December 31, 2023, the company has registered an 18 per cent rise in its net profit at ₹62.28 crore when compared with ₹52.57 crore registered in the year-ago period. Disbursements for the December 2023 quarter went up 27 per cent to ₹1,252 crore (₹986 crore).
For the nine months ended December 31, 2023, net profit grew 19 per cent to ₹179.03 crore (₹150.12 crore in the year-ago period). Disbursements rose 29 per cent to ₹3,569 crore (₹2,760 crore).
Assets under Management stood at ₹12,800 crore as of December 31, 2023, from ₹10,500 crore as of December 31, 2022.