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Srinivas Acharya, managing director, Sundaram Home Finance Ltd said that the company is in talks with a company and in the next 15 days it will close the deal. While this particular portfolio size would be around Rs 11 crore, he said end of this fiscal the company would buy around Rs 50 crore worth of such assets.
"There is a huge scope in this space, in a year we can buy upto Rs 600-700 crore," said Acharya, adding that the company prefer to acquire such assets instead of directly considering it would require lots of man power supports, with different mind set. He noted, these loan accounts, which are typically around Rs 7 lakh in an average, also gives better yields and also recovery levels are high.
He added, the company from where Sundaram BNP Paribas Home Finance will originate the loans and we will then take over.
Speaking about the company's performance he said during the second quarter the company reported 11% increase in profit to Rs 36.11 crore from Rs 32.62 crore and disbursements were down to Rs 537 crore from Rs 685 crore, a year ago.
He attributed the drop to the sluggishness in the real estate market with excess supply and unsold stocks on the back of buyers adopting wait and watch approach in the hope of reduction in property prices.
Acharya hopes that the company would close the current fiscal with about 10% growth in loan book as the second of the half of the year, with the Government giving importance to this sector.
"There is some hope for a revival and we feel second half will be better. But for the moment it is only a muted growth with a recovery of some sort in."
The company is also planning to increase its rural housing financing. The company entered into this space four months before and till now it sanctioned around Rs 20 crore and set a target of around Rs 50 cr before the end of the year and Rs 100 crore following year.
To support the growth the company is looking to raise around Rs 1,500 crore before the end of the year as part of our fund raising plans through a mix of term borrowings, sub-ordinate debt, commercial paper, deposits and NHB refinance.
