Sundaram Home Finance plans to double disbursements in its Emerging Business (EB) segment to ₹500 crore in the current fiscal, driven by aggressive branch expansion with a focus on new geographies outside Tamil Nadu, especially smaller towns.
“The current expansion of the Emerging Business entails doubling our branch network within 12 months from the initial set of 50 branches,” D Lakshminarayanan, managing director, Sundaram Home Finance said in a release.
Strategic Expansion Beyond Tamil Nadu
Sundaram Home Finance primarily offers home loans, plot loans, home improvement & extension loans, loans against property of around ₹50 lakh. It entered the EB segment in October 2022, which includes small-ticket loans to entrepreneurs and affordable housing finance. Over the past three years, Sundaram Home Finance has set up 50 branches under the EB segment.
“We are targeting 100 EB branches by March 2026, with a large part of the expansion planned outside Tamil Nadu,” Lakshminarayanan said. In recent months, the company has opened EB branches in Jaggayyapeta, Punganur and Proddatur in Andhra Pradesh; Nalgonda and Sircilla in Telangana; and Udupi, Hospet and Chitradurga in Karnataka.
Scaling the Emerging Business Portfolio
Disbursements in the EB segment are expected to rise to ₹500 crore this fiscal from ₹200 crore last year. The segment currently accounts for about 3% of the company’s overall business, which Sundaram Home Finance aims to scale up to 10–15% over the medium term.