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Sundaram BNP Home to raise Rs 2,700 cr this fiscal to up assets under management

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BS Reporter Chennai
Last Updated : Jan 20 2013 | 3:24 AM IST

Sundaram BNP Home Finance, the home finance subsidiary of Sundaram Finance Limited, is planning to raise around Rs 2,700 crore during the current financial year, which would help the company in closing the year with Rs 5,000-crore assets under management (AUM).

Srinivas Acharya, managing director, Sundaram BNP Home Finance, said that 40 per cent of the money would be raised through non-convertible debentures (NCDs), and the remaining from the National Housing Board, debts, commercial papers and public deposits.

At present, the company’s assets under management (AUM) is around Rs 2,500 crore. Also, its securitisation would be increased from the present Rs 300 crore to Rs 500 crore.

“This is mainly due to the increase in the portfolio size,” G Sundararajan, chief financial officer of Sundaram BNP, said, adding that the company was looking at entering project financing from next year. “We will start with a small experiment with a ticket size of Rs 10-20 crore.”

The company has reported a net profit of Rs 94 crore for the year ended March 31, 2012, as compared to Rs 47 crore a year ago. Disbursements rose 61 per cent to Rs 1948 crore from Rs 1210 crore, while net non-performing assets (NPAs) stood at 0.06 per cent, as compared to 0.09 per cent a year ago. “We will close the fiscal with Rs 2500-crore disbursements,” Acharya added.

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First Published: Apr 27 2012 | 12:00 AM IST

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