CHENNAI: As part of its strategic South India expansion, Sundaram Home Finance (HF) is now foraying into Telangana in the emerging business (EB) segment comprising small business loans and affordable housing finance.
“Our plan in the initial phase is to open around 10 new emerging business branches in Telangana. We are looking at disbursements of Rs 120-150 crore over the next 12 months in this segment in the state,” said D Lakshminarayanan, MD, Sundaram HF, on the EB segment it diversified into in October 2022.
Since then, the company has expanded to over 50 branches, a majority of which are in TN and is now looking to expand its presence outside the state.
In the first half of the year, the EB segment had registered disbursements of Rs 229 crore, a three-fold growth over the first half of the previous year.
“The foray into Telangana represents another phase of our strategic expansion across South India in the emerging business segment following our entries into Andhra and Karnataka earlier this year. Small entrepreneurs in tier 3 and 4 towns of Telangana are gearing up for their next phase of growth creating positive opportunities for us in the small ticket loans segment. We also see strong potential in the affordable housing sector across smaller towns in the state and are confident of tapping new growth avenues in the low to mid income housing segment,” he added.