Srinivas Acharya, managing director of Sundaram BNP Home Finance, said the company is in talks with a market player and would close a deal in the next two weeks.
While the JV was targeting a portfolio size of around Rs 11 crore, Acharya said, they were keen on acquiring assets worth Rs 50 crore by the end of the present fiscal.
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“There is a huge scope in this space. In a year, we can buy Rs 600-700 crore,” he said, adding these loan accounts are of around Rs 7 lakh on an average and offer better yields and the recovery levels were also high.
Speaking of the company's performance, he said, during the second quarter it had reported a 11 per cent increase in profit to Rs 36.11 crore from Rs 32.62 crore, while disbursements fell to Rs 537 crore from Rs 685 crore posted a year ago.
He attributed the drop to the sluggishness in the real estate market as buyers were adopting a wait-and-watch approach hoping for a fall in property prices.
Acharya expects the company to close the present fiscal with around 10 per cent growth in the loan book. “There is some hope for a revival and we feel that the second half of the fiscal would be better. But, for the moment it is only a muted growth with a recovery of sorts."
The company is also planning to increase its rural housing financing business. The company had entered this space about four months ago and till now has sanctioned around Rs 20 crore and has set a target of around Rs 50 crore in disbursals by the end of the present fiscal and Rs 100 crore for the following year.
To support the growth, it is looking at raising around Rs 1,500 crore by the end of the fiscal through a mix of term borrowings, subordinate debt, commercial paper, deposits and National Housing Bank refinance.