Sundaram BNP Paribas Home Finance, a joint venture between Sundaram Finance Ltd. of the TVS Group and BNP Paribas of France, is planning to raise Rs.2,500 crore this year.
Srinivas Acharya, Managing Director, Sundaram BNP Paribas Home Finance, indicated that the money would be raised from assorted sources. Accessing debenture market, tapping National Housing Bank and seeking term loans from banks were among the options, he added.
“After two years of slowdown in the industry, we are hoping that there will be some sort of recovery this year. We are targeting a 15 per cent growth in disbursements, and the fund raising initiative is to finance our growth plans,’’ he said.
Total loan assets under management as at the end of March 2016 stood at Rs. 7,500 crore, the same as last year.
The net profit of the company went up 4.3 per cent to Rs.153 crore in 2015-16 (Rs.146 crore).
Despite adverse market conditions, the net NPA (non-performing assets) stood at a satisfactory 0.98 per cent as on March 31, 2016, as a result of the company’s focus on quality business, he said.
Revenue from operations for the year ended March 2016 stood at Rs.927 crore (Rs.954 crore).
“Rural portfolio contributes around Rs.200 crore. We expect this to go up to Rs.300 crore this year. We see good potential in the rural segment, and have stepped up our efforts in this segment,’’ he said.
According to him, the company “`has been actively pursuing buying portfolios of affordable housing finance companies.’’