CRISIL upgrades Sundaram Home Finance's FD rating to FAAA

: Rating agency CRISIL has upgraded the fixed deposit rating of city-based Sundaram BNP Paribas Home Finance to 'FAAA' with stable outlook.
The rating "factors in the tremendous support" the company gets from Sundaram Finance Ltd in terms of business support and management inputs, Sundaram BNP Paribas Home Finance said in a statement.
Sundaram BNP Paribas Home Finance is 50.1 per cent and 49.9 per cent joint venture between Sundaram Finance Ltd and BNP Paribas of France.
"The upgrade in rating recognises the inherent strength of the company and the growth opportunities. The company is seeing good growth in new home loan disbursements this year", company Managing Director, Srinivas Acharya said.

"With this rating upgrading, we expect to further increase our deposit base as part of our fund raising plans", he added.
The company had a deposit base of over Rs 1,000 crore and was looking to increase it to Rs 2,000 crore this year to fund growth plans through a mix of various funding instruments, the statement said.

Deposits contribute around 15 per cent of the total funding mix, it said.
Sundaram BNP Paribas Home Finance has over 110 branches across the country and currently it was in the process of opening 10 more offices, the statement said.
During the second quarter of current financial year, the company witnessed a 32 per cent growth in home loan disbursements and was continuing to see good traction in the home loan segment in third quarter, it added.