Non-banking finance company Sundaram BNP Paribas Home Finance has registered a 10.6 per cent jump in its second quarter net profit at Rs 36.11 crore for the quarter ended September 30.
The Chennai-based company had registered a net profit of Rs 32.62 crore during the corresponding quarter of previous year, Sundaram BNP Paribas Home Finance Managing Director, Srinivas Acharya said.
For the first half of the current financial year ended September 30, net profit grew by 11.51 per cent to Rs 78.25 crore from Rs 70.17 crore registered during the same period last year.
Total disbursements for the first half of the current fiscal slipped to Rs 1,022 crore from Rs 1,338 crore.
Loans under management crossed Rs 7,000 crore during the first 6 months of FY14-15 at Rs 7,414 crore.
Noting that the real estate market was quite sluggish during the first half of the current financial year, Acharya said, "Two things have happened. We have seen surplus unsold stocks and new announcements (from realtors) have come down."
"We expect some improvement in the offtake of flats during the fourth quarter. Overall, we expect 10 per cent growth in terms of disbursements by March 31, 2014," he told reporters.
About the rural housing finance scheme, he said, "Since its launch two months ago, the company has done business about Rs 20 crore business. We can do Rs 50 crore this year."
On future plans, he said the company was in talks with smaller housing finance companies to buy portfolio in the affordable housing space. "We are in talks with one company. It is in advance stage. The deal size is around Rs 11 crore," he said, adding the company was looking at this space since it has potential to generate business of about Rs 600-700 crore.
On fund raising plans, he said the company was looking to raise around Rs 1,500 crore before the end of this year, through a mix of term borrowings, sub-ordinate debt,commercial paper and NHB refinance.
