Sundaram BNP Paribas Home Finance has reported 12.16 per cent increase in net profit at Rs 70.17 crore for the six month period ending September 30, 2013.
The company had reported net profits at Rs 62.56 crore for the same period of the previous year, Sundaram BNP Paribas Home Finance said in a statement.
The company, the home finance subsidiary of non-banking finance company Sundaram Finance, said home loan disbursements during the period April to September 30, 2013 grew by 7.63 per cent to Rs 1,338.73 crore from Rs 1,243.77 crore registered during the same period of the previous year.
"The overall negative sentiment in the economy, coupled with the recent agitation in Andhra Pradesh has been slowing down the pace of the overall home loan growth", it said.
"We believe that with leading real estate players moving to Tier II and III cities of Tamil Nadu, the long-term outlook remains positive", Sundaram Home Finance Managing Director, Srinivas Acharya said.
"..despite the opportunities in the real estate sector,the immediate and near term growth outlook is expected to be sluggish on account of economic slowdown, weak employment scenario and high inflation", he said.
On future plans, he said the company would continue to strengthen its presence in the south market.
"We are hopeful that the Andhra Pradesh market, which is an important driver for our growth, will recover in the second half of the year. Simultaneously, we will continue to explore opportunities to increase our presence in central and western India", he added.
Sundaram BNP Paribas Home Finance is a 50.1 per cent and 49.9 per cent Joint Venture between Sundaram Finance and BNP Paribas of France, the statement added.