Sundaram Home Finance Ltd. Managing Director D Lakshminarayanan
Sundaram Home Finance Ltd. (SHFL), as a part of its growth programme, is planning to enter into the affordable housing section throughout the present fiscal, stated a prime official.
“Like the newly started Small Business Loan [segment], we will try to get into affordable housing segment by starting a pilot in Tamil Nadu,” stated D. Lakshminarayanan, MD throughout an interplay.
“Hopefully, it will happen during the next quarter. It is still in the drawing board. We are planning to lend up to ₹30 lakh as per the criteria laid down for this segment,” he stated.
The affordable housing market is roughly â‚ą90,000 crores – roughly about 5-6% of general housing market. It is rising quick on the fee of ~15-16%.
According to Mr. Lakshminarayanan, the brand new exercise can be a pure extension for SHFL because it already supplies dwelling loans, dwelling enchancment loans, dwelling extension loans, top-up loans and plot loans accounting for 68% of whole disbursement of ₹3,978 crore in FY23. Hence, SHFL feels it might develop sooner within the affordable housing section than the SBL section.
The goal clients are primarily the salaried class and self-employed from Tier-II and Tier-III cities. “There is a keenness among youngsters to own a house in small towns. While the interest rate hikes had impacted the affordable housing segment, the long-term outlook for this segment is positive and is poised to grow well in the coming years,” he stated.
The housing finance arm of City-based NBFC Sundaram Finance forayed into SBL throughout October 2022 and opened 10 branches in Tamil Nadu within the first six months. It plans to open 10 extra branches this fiscal in Tier-III and IV cities.
Asserting that the corporate is aiming for 25-30% progress in general disbursements over final 12 months and 15% progress in Assets Under Management of ₹11,005 crore, he stated it is going to be performed by deepening presence within the southern market.
Explaining additional, he stated that the corporate is witnessing restoration within the housing market throughout the board, in all segments and geographies it’s current in. Multitude of fee hikes has not dampened the shopping for sentiment and demand stays robust and this augurs effectively for the housing sector, he added.
“The concerns on inflation have eased. There is now a stability in interest rates. From a housing perspective, the structural drivers underpin growth in small towns,” he stated.
During FY24, SHFLÂ can be opening round 15 new branches in Telangana, Andhra Pradesh and Tamil Nadu and 5 elsewhere. Plans are on to rent round 300 folks throughout SBL and prime lending enterprise.
With regard to Gross Non-performing Assets, he stated it stood at 2.5% of whole advances and have been aiming to deliver it down additional. Collections remained at a wholesome 95% and slippages have been minimal.
