Chennai- based non-banking finance company Sundaram Finance (SFL) is all set to enter the corporate loan segment and for this purpose it is looking at companies with clean track records. The company, a key player in the commercial vehicle and car finance, on Monday got its shareholders approval to enter the segment and it will be offering loans to public and private domestic companies with an initial corpus fund of close to Rs 30,00 crore.
According to a company filing with NSE, the loans will be disbursed to corporate bodies against hypothecation of vehicles, equipment, inventories or other assets as well as purchase of tyre, fuel, insurance for vehicles or even for working capital requirements. The company will be offering a maximum of Rs 15 crore in a single transaction. ?The companies with accumulated losses for a consecutive period of three financial years, firms which have been referred to Board for Industrial and Financial Reconstruction (BIFR) and the entities which had been under receiver rule would be exempted from the company?s portfolio,? sources close to company said.
Recently, SFL had completed the acquisition of 49.9% stake each held by BNP Paribas Asset Management in its two subsidiaries namely Sundaram BNP Paribas Asset Management Company and Sundaram BNP Paribas Trustee Company for a consideration of Rs 141.48 crore. Meanwhile, Sundaram BNP Paribas Home Finance, a joint venture between Sundaram Finance (SFL) and the French banking major, BNP Paribas Group has drawn up expansion plans to cash in on the upswing in demand for new homes. The company has upgraded 16 of its spoke locations in South India into full fledged offices, enabling a faster tapping into the business potential in these markets. SFL had posted a 26.26% rise in its net profit to Rs 67.53 crore for the second quarter.