Driven by increased demand for loans from smaller towns, Sundaram Home Finance posted a 51% increase in its net profit at `52.56 crore for the third quarter of FY23 as compared to Rs 34.90 crore in the corresponding quarter of last fiscal. The company’s disbursements went up 51% to `985.90 crore as compared `651.84 crore.
During the third quarter, the company forayed into the small business loans segment, wherein it will provide loans of up to `20 lakh to small shops and business enterprises. The company has opened new branches in Madurai, Tenkasi, Theni, Salem, Rasipuram, Tirunelveli and Sivakasi.
Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance, said, “Residential real estate sales are on a multi-year high. We continued on the positive growth trajectory in the third quarter driven by disbursements in tier 2 and 3 towns. The outlook is positive and the long-term growth story remains intact.”
On the new small business loans foray, he said: “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.”