Sundaram Home Finance is looking to raise Rs 2,000 crore in the second half of the year through a mix of debt instruments and bank funding.
Lakshminarayanan Duraiswamy, MD – Sundaram Home Finance, said, “After a nervous start to the year, we have been witnessing some green shoots in the last two months in the Housing Sector, especially in Tier two towns in South India.”
The Managing Director of Sundaram Home Finance said that home loan enquiries have reached pre-COVID-19 levels. “While the sales cycle is taking a bit longer, the home loan enquiries in October have reached the same level as last year,” he said.
The home finance subsidiary of Sundaram Finance Ltd. has registered good growth in the first half of the year and the company’s deposits stood at Rs 1,742 crores at the end of September 2020, with a net accretion of around Rs 140 crores.
On fund-raising plans, Duraiswamy said that the company will continue to expand its presence in the four southern states, especially in tier two and tier three towns.
“In the first half of the year, we had seen demand pick up from the non-metro towns and think that there is room to grow our business in these markets. We plan to raise Rs 2000 crore in the next six months to fund our growth plans,” the MD said.
On the impact of COVID-19, Duraiswamy said that the housing segment is still under-penetrated in the country. “Given this scenario, I believe that Housing Finance as space will continue to grow,” he said.
Sundaram Home Finance has 115 branches across the country providing home loans, plot loans, home improvement and extension loans and loans against property.