Sundaram Home Finance Managing Director D. Lakshminarayanan has drawn up plans to open 25 small business loan branches, of which 10 in Telangana.
Sundaram Home Finance Ltd., (SHFL) has drawn up plans to disburse ₹100 crore worth of Small Business Loans (SBL) over the next 12 months, said Managing Director D. Lakshminarayanan.
As part of its growth strategy, SHFL has decided to foray outside of Tamil Nadu into Telangana to expand its business activities, even while doubling the total branches to 50 over the next 12 months.
The wholly-owned subsidiary of Sundaram Finance forayed into the SBL segment in October 2022 by opening 25 branches in smaller towns of Tamil Nadu.
“We are currently in the process of identifying pockets of opportunities amongst the smaller towns in Tamil Nadu and Telangana and expect to finalise these in Q4 this year. About 15 new branches in Tamil Nadu and 10 in Telangana are set to become fully operational next year,” he said.
Currently, SHFL has a workforce of 200 people and another 150 people are likely to be hired, he said.
For the small business segment, SHFL offers loans of up to ₹20 lakh against house property to small traders, shops and entrepreneurs. In the first year of its operations, it had disbursed ₹65 crore and plans are on to disburse ₹100 crore over 12 months.
SHFL recently announced its foray into the affordable housing segment. In the initial phase, it is planning to open 10 branches in Tamil Nadu and hire up to 75 people.
For the first half of FY24, SHFL posted net profit of ₹117 crore on disbursements of ₹2,307 crore.