Sundaram Home Finance has reported an 18 per cent increase in net profit at ₹59.33 crore for the quarter ended September 30, 2023, compared with ₹50.30 crore clocked in the year-ago quarter.
Disbursements during Q2 of this fiscal grew 29 per cent to ₹1213.87 crore (₹940.56 crore).
For the half year ended September 30, 2023, the net profit rose 20 per cent to ₹116.75 crore against ₹97.56 crore in H1 of FY23. Disbursements went up 33 per cent to ₹2307.38 crore compared with ₹1736.25 crore.
“The strong growth of 33 per cent in disbursements in the first half was driven by our continued expansion in Tier-2 and -3 towns. We opened over 15 new branches during this period,” said Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance.
The company had forayed into the small business loans (SBL) segment in October last year. In the first year of its entry into this new segment, the company opened 25 exclusive SBL branches in TN and hired over 150 people for this segment.
Sundaram Home has also announced its foray into the affordable housing segment and plans to open 10 branches. It will hire about 75 people in Tamil Nadu and Andhra Pradesh for this business by March 2024.
“The prospects of the home loan business continues to be positive on the back of end user-driven demand. Smaller towns are growing faster than the Tier 1 cities and provide growth opportunities,” he said.