Sundaram Home Finance disbursement in non-South market crosses ₹500 cr. mark in H1 of FY25

Sundaram Home Finance Managing Director D. Lakshminarayanan says they are confident that this growth trajectory will continue and touch e ₹1,000 crore milestone.

Sundaram Home Finance strategy of expanding outside the southern markets has started to pay rich dividends with disbursement crossing ₹500 crore-mark in the first half FY25.

The wholly owned subsidiary of Sundaram Finance had disbursed ₹255 crore in the year-ago period in the non-Southern markets, while for the entire country it was ₹2,896 crore.

“This is the first time the company has registered disbursements of over ₹500 crore in non-South markets in a half year. We are confident that this growth trajectory will continue in the second half and hope to touch the ₹1,000 crore milestone from outside South market in FY25”, said Managing Director D. Lakshminarayanan during an interaction.

SHF has been steadily increasing its presence outside the Southern states such as Mumbai and Pune (Maharashtra), Kota and Udaipur (Rajasthan), Indore (Madhya Pradesh) and Raipur (Chhattisgarh).

“The contribution from non-South markets has been steadily increasing and was at over 15% of its overall disbursements at the end of the first half. Non South contribution is set to cross 20% in coming years,” he said.

Asked about the growth plans, he said said: “We see a lot of growth opportunities in smaller towns in Western and Central India in the prime housing finance space and will be looking to expand our base in these select towns in these geographies outside the South.”

While consciously focusing on expanding the prime housing finance space outside of Tamil Nadu, SHF is also betting on the newly launched Emerging Business Segment. The company recently expanded its presence in West and Central Tamil Nadu in this segment.

“Small Business Loans and Affordable Housing Financing will see a faster growth in Tamil Nadu in the coming years as we look to penetrate smaller towns in the state,” he said.