Sundaram BNP Paribas Home Fin to Raise 2,700 Crore This Fiscal


Bangalore: Sundaram BNP Paribas Home Finance plans to raise around 2,700 crore through non-convertible debentures and refinancing from National Housing Bank in this fiscal (2012-13), a top company official said.

Sundaram BNP Paribas Home Finance is a joint venture between Chennai-based Sundaram Finance (holds 50.1 per cent stake) and France's BNP Paribas (49.9 per cent stake).

"We are planning to raise Rs 2,700 crore this (financial) year" Sundaram BNP Paribas Home Finance Managing Director Srinivas Acharya told reporters after declaring the annual results for 2011-12.

The company would raise the funds through non-convertible debentures and by refinancing from National Housing Bank, he added.

Sundaram BNP Paribas Home Finance today reported a 100 per cent growth on its net profit at Rs 94 crore for the year ended March 31, 2012 as against Rs 47 crore registered during the same period of the previous fiscal.

The company witnessed a 61 per cent jump on its home loan disbursements during the period ended March 31, 2012 to Rs 1,948 crore compared to Rs 1,210 crore registered during the same period of the last fiscal.

The company declared a dividend of 25 per cent for the year ended March 31, 2012 compared to 15 per cent during the same period of last financial year.

"Funds will be required to disburse the loans. We have set a target in home loan disbursements of Rs 2,500 crore in this financial year...", Sundaram BNP Paribas Home Finance Vice-President and Head (Operations) S Rajagopalan said.

"It has been another year of high growth for us despite the series of interest rate hikes. The 61 per cent growth in home loan disbursements endorses our stated position that there is still a lot of untapped potential in southern market", Acharya said.

The company during the financial year made its formal foray outside the southern region by having a presence in Kolkata, Nasik, Kolhapur(Maharashtra), Bhopal and in Bhubaneswar.

"Having made our first foray outside the South market last year, we will look to establishing a strong customer base in these newer geographies this year...", he said.

Sundaram BNP Paribas Home Finance currently has a presence in 73 locations and intends to take it to 100 locations with a strong focus in southern region, an official said.

Source: PTI