Sundaram Home Finance said its new business segment – small business loans – has received a positive response and it will be expanding its presence in this segment this fiscal.
The company recently forayed into the small business loans segment wherein it would be providing loans of up to ₹20 lakh to small shops and small business enterprises. The company has, so far opened new exclusive branches in Madurai, Tenkasi, Theni, Salem, Rasipuram, Tirunelveli and Sivakasi.
“The initial response from the locations where we have opened exclusive branches has been quite positive. We are confident of the growth prospects in this segment and will continue to expand our presence in this segment in Q4,” said Lakshminarayanan D, MD, Sundaram Home.
Net up 51%
The company has reported a 51 per cent increase in its net profit at ₹53 crore for the quarter ended December 31, 2022, compared with ₹35 crore in the year-ago quarter, according to a statement.
The company’s disbursements also went up 51 per cent to ₹986 crore (₹652 crore). For nine months ended December 31, net profit grew 31 per cent to ₹150 crore (₹115 crore) and disbursements rose 79 per cent to ₹2,760 crore (₹1,542 crore).
“The residential real estate sales are on a multi-year high. We continued on the positive growth trajectory driven by disbursements in tier-2 and -3 towns. The outlook is positive and the long-term growth story remains intact,” said Lakshminarayanan.