Sundaram BNP Paribas Home Finance has reported a 12 per cent increase in its net profit for the first half year ended September 30, 2014, at Rs. 78.25 crores compared to Rs. 70.17 crores achieved in the corresponding period last year. Loans under Management crossed the Rs. 7,000-crore mark during the first half of the year and stood at Rs. 7,414 crores at the end of September 2014. Disbursements for H1 ended September 30, 2014, was at Rs. 1,022 crores (Rs. 1,338 crores).
Net profit for Q2 ended September 30, 2014, increased 11 per cent to Rs. 36.11 crores against Rs. 32.62 crores achieved in the corresponding quarter last year.
Commenting on the scenario, Mr. Srinivas Acharya, Managing Director, Sundaram Home Finance, said: “The real estate market was quite sluggish during the first half with excess supply and unsold stocks on the back of buyers adopting a wait and watch approach in the hope of a reduction in property prices.”
Sundaram Home Finance had launched a special scheme for rural housing finance during the last quarter. Mr. Srinivas Acharya said: “Once the overall sector recovers, demand is expected to pick up on the rural housing finance front as well.”
On the outlook for the second half of the year, he said that, with the Government giving importance to this sector, there is some hope for a revival, and H2 will be better. But for the moment it is only a muted growth with a recovery of some sort in Q4 of this year.
Sundaram Home Finance has 105 branches spread across the country. Sundaram BNP Paribas Home Finance is a 50.1:49.9 per cent joint venture between Sundaram Finance and BNP Paribas.