Sundaram HF revises upwards interest rates on deposits

CHENNAI: Sundaram Home Finance has revised interest rates upwards on deposits effective November 1. This is the third upward revision in recent months.

It will pay 8% p.a (7.50%) on 5 year deposits by senior citizens and Trusts. On 3 and 4 year deposits, the interest rate has been raised to 7.65% p.a (7.15%) and 7.90% (7.50%). On 1 year deposit, it will pay 7% p.a (6.50%) for senior citizens and 6.65% p.a (6%) for Trusts, while on two year deposits, the company will pay 7.35% p.a (6.80%) for senior citizens and 7% p.a (6.30%) for Trusts.

For individuals other than senior citizens, the interest rates have been revised upwards to 7.55% p.a (7%) and 7.65% p.a (7%) on 4 and 5 year deposits and to 6.65% p.a (6%), 7% p.a (6.30%) and 7.30% p.a (6.65%) on 1,2 and 3 year deposits.

The deposit base stood at Rs 1,950 cr as on September 30, 2022.  Deposits constitute about 15% of the company’s fund raising basket. Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance said, “The earlier two upward revisions that we effected in June and July received positive response from the depositors and we mobilised fresh deposits of Rs 183 cr during the first half of the year. With this third upward revision, the rates have gone up this financial year by nearly 2% on 3 year+ deposits.”

Sundaram Home Finance registered net profit of Rs 97.5 cr on disbursements of Rs 1,740 cr in the first half of this year.