Sundaram BNP Paribas Home Finance, a subsidiary of Sundaram Finance, has registered a 27% increase in its net profit at Rs 40.52 crore for Q2 as compared to Rs 31.95 crore registered in the same period last year.
Income from operations stood at R242 crore as compared to R238 crore, registering a growth of 1.68% while loans under management stood at R7535 crore as on September 30, 2015.
The company registered home loan disbursements of R450 crore in Q2 as compared to R537 crore in the corresponding quarter last year.
Srinivas Acharya, MD, Sundaram BNP Paribas Home Finance said: “The real estate sector continues to be sluggish. Recovery has been delayed and still seems at least a few months away. We are continuing to witness stiff resistance from buyers and the quantum of unsold stock remains a concern. Improvement in hiring sentiments, especially in the IT sector, could trigger a recovery in the home buying space later this year.’
In the first week of October, the company had lowered its PLR for home loans by 25 basis points to 9.65%. The company recently cut its deposit rates by 25 basis points to 8% per annum for 12, 18, 48 and 60 months and 8.25% for 24 and 36 month deposits (additional 0.50% for senior citizens). Deposit base was increased to R958 crore as at the end of September 2015. Sundaram BNP Paribas Home Finance is a 50.1%-49.9% JV between Sundaram Finance and BNP Paribas of France.
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