Sundaram Home Finance Expands Presence in Madhya Pradesh with New Branch and Ambitious Disbursement Target
New Branch in Indore
The renowned home finance company, Sundaram Home Finance, is further expanding its national footprint by opening a second branch in Indore, Madhya Pradesh. With this move, the company aims to disburse a whopping Rs 2.25 billion in the state this year.
Progressive Expansion Outside South India
Sundaram Home Finance, having delved into the Maharashtra market just last month and Rajasthan in April, is making substantial strides in geographical diversification. Its ongoing dedication to expansion is cementing its reputation as a strong player operating beyond its traditional roots in South India.
Madhya Pradesh: An Essential Market for Expansion
Madhya Pradesh is being viewed as a crucial market for Sundaram Home Finance’s efforts to establish a stronger foothold outside South India. It envisions substantial growth opportunities arising from the increasing affordability of various residential properties, ranging from small homes to villas, ultimately increasing demand for home finance services.
Growing Opportunities in Real Estate
Managing Director D. Lakshminarayanan highlighted the ascendant real estate scenario in Madhya Pradesh, emphasizing the significant and ongoing growth observed in Indore over the past couple of years. Noting the potential for growth in the commercial sector, he remains optimistic that Sundaram Home Finance will be strategic in meeting burgeoning market needs by providing accessible financing solutions.
Ample Options for Financial Support
In addition to catering to residential property buyers, Sundaram Home Finance recognizes the growing presence and significance of micro, small, and medium enterprises (MSMEs) in the state. With this in mind, Lakshminarayanan emphasized the company’s intent to extend working capital funding opportunities to MSMEs, aiming to contribute to their growth by bolstering their financial capabilities.
A Growing Disbursement Target
Sundaram Home Finance aims to build upon last year’s successful disbursement of Rs 1.5 billion in Madhya Pradesh and has set ambitious targets of disbursing Rs 225 crore for the current financial year. This impressive target reflects a significant 50% increase from the previous year, indicative of the company’s confidence in the potential of the market.
Rapid Expansion Plans
Committing to its expansionary goals, Sundaram Home Finance plans to open three additional branches in various locations throughout Madhya Pradesh in the next 12-18 months. This proactive approach will not only enhance access to crucial financial services for residents but also foster economic growth and development within the state.
Stellar Financial Performance
Sundaram Home Finance reported a substantial net profit of Rs 66 crore for the April-June 2024 quarter. Alongside this, the company successfully disbursed a hefty sum of Rs 1,353 crore during the same period, representing another significant milestone in its growth journey. These impressive figures further validate its prowess and its ability to make a lasting impact in the home finance sector.
In summary, Sundaram Home Finance is making great strides in expanding its operation beyond the southern market by establishing a strong presence in Madhya Pradesh. With the inauguration of its second branch in Indore and ambitious disbursement targets, the company is actively tapping into the promising opportunities offered by Madhya Pradesh’s rapidly growing real estate market and flourishing MSME sector. Sundaram Home Finance’s dedication to both consumer and commercial financing is poised to not only benefit potential homebuyers and investors but also contribute to the overall economic development of the state.
