Sundaram Home Finance expands presence in Maha

CHENNAI: As part of its expansion in Maharashtra, Sundaram Home Finance (SHF) on Friday opened its second office in Pune. This is the company’s sixth branch in the state.

The new branch will provide home loans targeting the mid segment of the market with typical ticket size being around Rs 40 lakh. SHF achieved disbursements of over Rs 100 crore in Pune in FY24 through its first branch.

On the expansion plans, D Lakshminarayanan, MD, Sundaram Home Finance, said, “Pune is turning into a vibrant home finance market and its proximity to Mumbai has led to fast-paced growth in terms of infra development and the increasing presence of IT companies.”

He also said, “the tier 2 towns in Maharashtra are seeing strong economic growth, which is leading to a spurt in demand for residential properties. We will look to steadily grow our presence in the state by strengthening our presence in existing locations.”

Having registered disbursements of over Rs 250 crore in Maharashtra last year, SHF is now targeting disbursements of over Rs 450 crore in the state this year.

The company had expanded into Navi Mumbai in February this year. Lakshminarayanan said, “We have seen a robust demand for home loans in the first six months of our launch in Navi Mumbai and expect this trend to continue. We are currently in the process of augmenting our team in Mumbai to gear up for our next phase of growth.”

Besides these two regions, SHF also has branches in Thane, Nashik and Nagpur, in Maharashtra.

On tapping markets outside south India, he said, while tier 3 and 4 towns would be driving disbursement growth, SHF would scout for opportunities in west and central India, to meet its stated intent.

SHF registered a net profit of Rs 66 crore for the Q1 ended June 30, 2024 on disbursements of Rs 1,353 crore.