Sundaram Home Finance to avail of refinance from NHB
08 May 2003
The company is a three-way joint venture between Sundaram Finance (holding a 65-per cent stake), IFC (20 per cent) and FMO Netherlands (15 per cent).
Says Sundaram Home Finance managing director Nitin Palany: "Earlier NHB's interest rates were high. Now the rate has come down to 6.9 per cent, variable, still leaving us a margin of 2 per cent. Further, the loan period is 15 years."
The company will raise around Rs 100 crore from NHB. According to Palany, the company's loan portfolio stands at Rs 350 crore as on 31 March 2003.
Focused on the retail and individual segment, Sundaram Home Finance has a cumulative loan disbursal of Rs 450 crore. During fiscal 2002-03 the disbursements were Rs 237 crore while approvals totalled Rs 356 crore.
This has resulted in its income going up to Rs 40.83 crore from Rs 22.25 crore earned during 2001-02. Similarly, the after tax profit more than doubled to Rs 4.47 crore last fiscal compared to Rs 2.05 crore during 2001-02.