After a nervous start to the year, the company has been witnessing some green shoots in the housing sector during the last two months, especially in tier II towns in south India, said Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance.
Sundaram Home Finance, a subsidiary of Sundaram Finance, is looking to raise Rs 2,000 crore in the second half of the year through a mix of debt instruments and bank funding to support growth plans.
Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance, said: “We will continue to expand our presence in the four southern states, especially in tier II and tier III towns. In the first half of the year, we had seen demand growth from non-metro towns. We think there is room to grow our business in these markets. We plan to raise Rs 2,000 crore in the next six months to fund our growth plans.”
He said after a nervous start to the year, the company has been witnessing some green shoots in the housing sector during the last two months, especially in tier II towns in south India. “While the sales cycle is taking a bit longer, the home loan enquiries in October reached the same level as last year,” Duraiswamy said.
The company’s deposits registered good growth in the first half and stood at Rs 1,742 crore at the end of September with a net accretion of around Rs 140 crore.
On the outlook for the home finance space, Lakshminarayanan said, “The housing segment is still under penetrated. Given this scenario, I believe that housing finance as a space will continue to grow. This pandemic will further drive home the need for home ownership and we will see growth in satellite towns.”