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Sundaram Home Finance is preparing for its next growth phase in the Emerging Business (EB) segment, aiming to double disbursements to over INR 400 crore within the next 12 months. The EB segment caters to small business loans of up to INR 20 lakh and affordable housing finance, offering loans up to INR 35 lakh. Having expanded beyond Tamil Nadu into Andhra Pradesh with five new branches, the company now plans to enter Telangana. With disbursements in the EB segment exceeding INR 200 crore and a workforce of over 300 employees, the company is optimistic about achieving its growth targets. Sundaram Home Finance reported a 35 per cent increase in total disbursements, reaching INR 1,692 crore for the third quarter ending December 31, 2024.
Sundaram Home Finance is set to embark on its next phase of growth in the Emerging Business (EB) segment, aiming to double its disbursements to exceed INR 400 crore within the coming 12 months. The EB segment provides small business loans of up to INR 20 lakh for small shops and enterprises, alongside affordable housing finance, offering loans up to INR 35 lakh. Advertisement
Following the establishment of over 40 branches in Tamil Nadu and a recent expansion into Andhra Pradesh with the launch of five new branches, Sundaram Home Finance is now planning to extend its presence to Telangana as part of its broader expansion strategy.
D Lakshminarayanan, Managing Director of Sundaram Home Finance, discussed the company's advancements in the EB segment, noting that the organisation had gone through three distinct phases. Initially, it operated in a startup mode to assess the market and customer base in Tamil Nadu. This was followed by an expansion into smaller towns, and it has now entered the growth phase, focusing on extending its reach beyond Tamil Nadu.
He further stated that the company's immediate priority is to stabilise and strengthen its branch network in Tamil Nadu and Andhra Pradesh while ensuring consistent growth. Once a strong presence is established in these states, the company anticipates a quicker rollout of new branches, with Telangana being the next expansion destination. With disbursements in the EB segment exceeding INR 200 crore, the company remains confident in its ability to double this figure over the next 12 months. Additionally, the EB segment has expanded to include a workforce of over 300 employees.
Lakshminarayanan also mentioned that while the company will continue expanding into Tier 2 and Tier 3 towns in Tamil Nadu, its future growth will be largely driven by its expansion into Andhra Pradesh and Telangana. Sundaram Home Finance recorded total disbursements of INR 1,692 crore for the third quarter ending December 31, 2024, reflecting a 35 per cent increase.
It recorded a net profit of Rs 62.55 crore for the October-December 2024 quarter.The city-based company, a subsidiary of Sundaram Finance Ltd, had registered a net profit of Rs 62.28 crore during the corresponding quarter of last financial year. Net profit for the nine month period ending December 31, 2024 stood at Rs 173.09 crore, as against Rs 179.03 crore recorded in the corresponding period of last financial year.
Sundaram Home Finance is actively advancing its presence in the Emerging Business segment with a well-defined expansion strategy. The firm's phased approach, from assessing market potential to establishing a robust branch network, is proving successful, as evidenced by the steady growth in disbursements and workforce expansion. Put together, all of this makes Sundaram Home Finance well-positioned for sustained growth in the affordable housing and small business loan segments.
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