Sundaram BNP Paribas Q2 net nearly doubles to Rs 21.08 cr

Sundaram BNP Paribas Home Finance has nearly doubled its net profit during the second quarter ending September 30, 2011, against that of its net profit in the corresponding quarter previously

The net profit for the quarter was Rs 21.08 crore (Rs 11.61 crore) on disbursements of Rs 452 crore (Rs 294 crore).

Supported by the performance, the company is confident of achieving its disbursement target of Rs 1,800 crore for the year, said Mr Srinivas Acharya, Managing Director, Sundaram BNP Paribas Home Finance.

The company is expanding presence while strengthening position in traditional markets in the South. Some of the new markets it expects to be present ‘very shortly' are Bhopal and Bhubaneshwar. Others on the list are Aurangabad and Kolhapur. The housing finance company has 68 offices now. By the year end the number will be 75.

Nearly 40 per cent of its business is from Tamil Nadu; 23 per cent from Andhra Pradesh; 15 per cent from Kerala and 12 from Karnataka. The company is targeting the Tier-II and III cities in its expansion plans as business is being driven by strong employment generation in these areas. Its focus will be on the South with entry into select markets elsewhere.

As a provider of home loans, the company has seen that the hike in interest rates ‘per se' does not dampen the markets, said Mr Acharya, the Managing Director. End-users keen on buying their first home are making the investments.

The quality of loans continues to grow with NPA figures shrinking to a net of 0.27 per cent (0.42 per cent); and gross to 0.57 per cent (0.71 per cent). Its weighted average cost of funds is 9.46 per cent with home loan rates starting from 10.75 per cent.