Chennai, Apr 18 (PTI) Sundaram Home Finance, a subsidiary of non-banking finance company Sundaram Finance Ltd, strengthened its footprint in Karnataka by launching a new branch in Tumkur. The company aims to disburse Rs 900 crore in the neighbouring State this year.
The Chennai-headquartered company currently operates 18 branches across locations including Mysore, Mangalore, and Hubballi and has also planned to expand into Tier III cities this year.
Commenting on the expansion in Karnataka, Sundaram Home Finance Managing Director D Lakshminarayanan said in a company statement on Friday: "We believe there are significant opportunities in smaller towns in Karnataka for our prime home finance business, and we aim to deepen our presence in these markets over the next 12 months."
He added, "Karnataka currently contributes over 10 per cent of our disbursements, and we expect this to increase in the coming years, supported by our continued expansion in Tier II and III towns across the State."
For the April–December 2024 period, the company recorded over Rs 600 crore disbursements in Karnataka, a growth of over 30 per cent compared to the same period in the previous financial year.
The company is targeting disbursements of around Rs 900 crore in Karnataka in the prime home finance segment this year, the statement said.
Speaking on the inauguration of the new branch in Tumkur, Lakshminarayanan said, "As an emerging industrial hub along the Chennai–Bengaluru Industrial Corridor, Tumkur is gradually becoming an employment cluster, with the presence of numerous MSMEs, large industrial units, and an integrated mega food park."
"We believe that business ancillaries will proliferate around the core industries and create a large opportunity base for our target segment—salaried individuals and self-employed professionals," he added.