Sundaram Home Finance (SHFL) posted a 16 per cent rise in standalone net profit to Rs 660 crore in the June quarter from a year ago, driven by market expansion in smaller cities and additional business from new branches.
Disbursements rose 24 per cent to Rs 1,353 crore. Assets under management rose to Rs 1,453 crore from Rs 1,169.9 crore, the wholly owned subsidiary of Sundaram Finance said in a statement.
“While we continue to strengthen our presence in southern markets and tier-2 towns, we will explore new opportunities in tier-3 and tier-4 towns. We are also steadily expanding our presence in select geographies outside south India,” managing director D. Lakshminarayanan said.
In the first quarter, SHFL announced a new division called Emerging Businesses, which will include affordable housing loans and small business loans. The company now plans to add 20 branches and hire 200 people in Tamil Nadu and Andhra Pradesh.
On the outlook for the newly launched affordable housing lending business, he said this new segment, coupled with lending to small and medium enterprises, is expected to register growth at a faster pace in the medium term.
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