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Sundaram Home Finance, a subsidiary of Sundaram Finance Ltd, has successfully crossed the INR 1,000 crore milestone in disbursements from non-southern markets during the latest financial year. Traditionally strong in South India, the company has expanded its reach into Maharashtra, Rajasthan, Madhya Pradesh, and Chhattisgarh, with non-south markets now contributing about 20% of total disbursements. This growth is driven by branch expansions, staff increases, and targeted focus on emerging Tier II and III towns outside the southern region. The company anticipates further growth in these regions, projecting INR 1,500 crore in disbursements in the ongoing financial year.
Sundaram Home Finance, the wholly-owned subsidiary of Sundaram Finance Ltd, has made significant strides in broadening its footprint beyond its traditional southern stronghold. According to a senior official, the company's disbursements in non-southern markets surpassed the INR 1,000 crore threshold in the recent financial year, marking an important milestone in its nationwide expansion strategy. Advertisement
Headquartered in Chennai, Sundaram Home Finance offers a diverse range of financial products, including home loans, plot loans, loans against property, and business loans aimed at traders and retailers. Historically rooted in South India, the company has successfully ventured into states like Maharashtra, Rajasthan, Madhya Pradesh, and more recently, Chhattisgarh, reflecting its ambition to capitalise on emerging markets.
In the financial year that concluded earlier this year, Sundaram Home Finance reported total disbursements of INR 6,517 crore, which represented a robust 29% increase compared to the INR 5,039 crore disbursed in the previous year. Notably, contributions from non-southern geographies have doubled over the last couple of years, now accounting for approximately 20% of the company's overall disbursements.
The company's managing director, D Lakshminarayanan, indicated that the identification of growth opportunities outside the South has played a pivotal role in this achievement. He highlighted that surpassing the INR 1,000 crore mark in prime home finance in non-southern regions demonstrates the effectiveness of their strategic efforts to expand across the country.
The rise in disbursements in these regions has been supported by the establishment of new branches and strengthening of existing offices, along with augmenting the workforce. This has resulted in an impressive year-on-year growth exceeding 50% in non-southern markets.
Looking ahead, Sundaram Home Finance expects disbursements from non-south markets to reach INR 1,500 crore in the current financial year. The focus remains on consolidating their presence in areas where they have recently expanded, while simultaneously exploring select growth avenues in Tier II and III towns beyond South India.
Presently, the company operates more than 150 branches across the country, signalling its commitment to deepening market penetration and diversifying its geographical footprint.
This shift not only enhances their market share but also contributes to broader financial inclusion by providing tailored lending solutions to emerging urban and semi-urban consumers. As they continue to pursue these new frontiers, Sundaram Home Finance is positioned to become a formidable pan-India player in the home finance sector.
Source - PTI
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