Sundaram BNP Paribas home finance which is a joint venture between Union de credit pour le Batiment (UCB) and Sundaram Finance Group has had a very little increase in the net profit of the company which rose from Rs152. 72 Cr in 2015 to Rs 154 Cr in 2016. The loans disbursed by the company in the year 2016 also grew by 5% from the previous year. It was Rs1743 Cr in 2015-16 which was Rs1831Cr for the year 2016-2017. The MD of the company Mr. Srinivas Acharya said that there has been an increase in the business activity in the real estate sector and the branches in Karnataka and Andhra Pradesh as well as those outside of the South India register strong growth in this year.
The company whose 50% of the business comes from South India plans to raise Rs1700 crore to find growth in the other parts of the country. The company is banking upon the affordable housing scheme by the Indian Government and the fact that it would, in turn improve the real estate sector. The company’s MD has said that the scheme from the Indian government is poised to improve the real ease sector which in turn would improve the company’s business in the sector. The real estate sector is a very competitive sector and there are many companies that are fighting to gain the upper hand in it proving difficult for a company to make huge profits out of it. Mr. Srinivas has also kept faith in the other initiatives that the government has taken to make this sector a less of a risk taking affair.
Union de credit pour le Batiment holds 49.9% share in the company with the rest of it being held by the Sundaram Finance Group. The company specializes in finance, business funds, IT solutions along with a wide array of loans. The company is doing really well in the business and is on course to expand its offering to the other part of the world which would make it among the biggest companies in the business.
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