The company is a joint venture between non-banking finance firm Sundaram Finance Ltd and BNP Paribas Personal Finance.
City based Sundaram BNP Paribas Home Finance Ltd is planning to raise Rs 3,500 crore during this financial year to fund its expansion plans, managing director of the company Srinivas Acharya said.
The company is a joint venture between non-banking finance firm Sundaram Finance Ltd and BNP Paribas Personal Finance. The company would continue to focus on the southern States and increase penetration into its existing areas of operations, Acharya said.
"To fund our expansion, we plan to raise Rs 3,500 crore this year through a mix of term loans from banks, refinance from National Housing Bank, subordinated debt, fixed deposits and commercial papers", he said in a statement here.
The company currently has over 110 branches across the country serving 50,000 customers. "Rating agency ICRA has upgraded our fixed deposit rating to MAAA (stable) from MAA+, the company said. "The outlook on the long-term rating is reaffirmed at AA+ stable", it said. The funding profile of the company is diversified with NHB refinance and debentures constituting 31 percent and 33 percent of the total borrowings, respectively, as of March, 2018.
"Fixed deposits contribute to 15 percent to the funding mix. Sundaram Home Finance has a deposit base of Rs 1,042 crore. There was a gross addition of Rs 387 crore last year", it said. Sundaram Home Finance has revised the interest rates on fixed deposits by 50 basis points.As per the new revision, senior citizens would get eight percent per annum for deposits upto 18 months, 8.25 percent for deposits of upto 36 months, 7.75 percent for deposits of upto 60 months. Trusts would get interest rates of 8.25 percent per annum for 36 months deposit.