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Sundaram Home Finance has expanded its Emerging Business (EB) branch network to 100 with the opening of a new outlet in Avinashi, near Coimbatore, marking a key milestone in its growth strategy. The Chennai-headquartered housing finance company is targeting disbursements of INR 500 crore in the EB segment by the end of FY2025-26, having already crossed INR 400 crore in the first nine months of the financial year. The EB segment focuses on affordable housing loans and small-ticket working capital finance. While Tamil Nadu remains a strong base, the company has significantly accelerated expansion into Karnataka, Telangana and Andhra Pradesh over the past year. Management expects recent budgetary subsidies for affordable housing to support demand and drive further growth across smaller towns and emerging markets.
Sundaram Home Finance has strengthened its presence in the affordable housing finance space by expanding its Emerging Business branch network to 100 locations, following the inauguration of a new branch at Avinashi near Coimbatore. The expansion aligns with the company's objective of scaling up disbursements in the EB segment to INR 500 crore by March 31, 2026. Advertisement
The EB vertical, which caters to affordable housing finance and small-ticket working capital loans, has seen steady traction during the current financial year. In the first nine months of FY2025-26, the company reported disbursements exceeding INR 400 crore from this segment, reflecting sustained demand from self-employed customers and households in semi-urban and rural markets.
According to Managing Director D Lakshminarayanan, the company adopted a measured approach in the early stages of building the EB portfolio, focusing on understanding customer behaviour, credit profiles and regional dynamics. The operational foundation established in Tamil Nadu has since enabled faster and more confident expansion into other southern states. Over the past 12 months, Sundaram Home Finance has doubled its EB branch network, indicating a sharp acceleration in rollout activity.
A notable share of this recent expansion has taken place outside Tamil Nadu, with new branches added across Karnataka, Telangana and Andhra Pradesh. Management has indicated that this geographical diversification is aimed at reducing concentration risk while tapping into under-penetrated affordable housing markets. The company continues to see headroom for growth within Tamil Nadu as well, particularly in Tier 4 and Tier 5 towns, where access to formal housing finance remains limited.
Looking ahead, Lakshminarayanan noted that subsidies announced in the Union Budget are expected to support demand for affordable housing, providing a structural tailwind for the EB segment. With 100 branches now operational, the company believes it is well positioned to scale up volumes while maintaining asset quality.
For the April-December 2025 period, Sundaram Home Finance reported a net profit of INR 212 crore on total disbursements of INR 4,911 crore, underlining the broader stability of its loan book as it continues to invest in emerging business growth.
Source - PTI
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