Sundaram Home Finance plans EB expansion in TN small towns, Targets Rs. 1300cr AUM in TN EB segment by year end

Plans 10 new branches in Tier 3 and 4 towns in the state

Sundaram Home Finance, the wholly owned subsidiary of Sundaram Finance, is planning to expand its footprint in the Emerging Business (EB) segment in Tamil Nadu. The Emerging Business segment focuses on affordable housing financing and small ticket working capital loans.

EB network expands to 70 in TN
The company forayed into the Emerging Business segment in October 2022 with the launch in Madurai. Over the last four years, the company has opened around 70 EB branches in Tamil Nadu.

Plans to open 10 new branches in TN
The company is now planning to open over 10 branches in small towns in TN in the Emerging Business segment. As part of this expansion, the company recently opened new EB branches in Ramanathapuram and Ottanchattiram in addition to expanding its EB presence to two temple towns, Tiruchendur and Tirukovilur.

Sundaram Home Finance, which has over 500 employees in the EB segment in TN, plans to hire another 50 people in the state as part of its expansion plans.

Targets Rs. 1300cr AUM in TN EB segment
The company had ended FY26 with an Assets Under Management (AUM) of over Rs. 650crores in the EB segment in TN and is now looking to grow this to around Rs.1300crore by the end of the financial year.

Sundaram Home Finance has been expanding its presence outside TN in the Emerging Business segment and has now spread its wings to Andhra, Karnataka and Telangana. During the last year, the company crossed the milestone of 100 branches in the EB segment in the process registering disbursements of over Rs. 500crores.

Commenting on the expansion plans for TN, D. Lakshminarayanan, MD, Sundaram Home Finance said,

“We have established a strong base in TN in the Emerging Business segment over the last four years expanding our presence to remote locations in the state. We believe the small towns in TN offer good growth opportunities in the affordable housing segment and expect this market to pick up pace in the medium to long term. Our plan is to further strengthen our presence in TN by expanding our branch network into more Tier 3 and 4 towns and to grow this business faster in the coming years.”

Sundaram Home Finance registered Net Profit of Rs. 85crores on disbursements of Rs. 1665crores in the first quarter of this year. Assets under Management grew 11% in Q1 and stood at Rs. 20325crores as on 30th June

Sundaram Home Finance provides home loans, plot loans, home improvement & extension loans, affordable housing finance, loans against property and small ticket loans to entrepreneurs.