Earlier in the week, Sundaram BNP Paribas (NSE 1.21 %) Home Finance Ltd, announced its plans of raising Rs 3,500 crore during this financial year for the purpose of funding its expansion plans.
Srinivas Acharya, managing director of the company went on to confirm this announcement.
The company having its headquarters in Chennai, India is a joint venture between BNP Paribas Personal Finance and non-banking finance firm Sundaram Finance Ltd (NSE 0.48 %).
Acharya then went on to say that the company will continue to target the southern States while simultaneously increasing penetration into its existing areas of operations.
Giving a statement to a local news outlet, economictimes.indiatimes.com, Acharya said, “In a bid to fund our expansion plans, we seek to raise Rs 3,500 crore by this year through a mix of subordinated debt, fixed deposits, refinance from National Housing Bank, term loans from banks, and commercial papers.”
Currently, Sundaram BNP Paribas has nearly 110 branches in India serving almost 50,000 customers.
The company then went on to reveal, “Our fixed deposit rating has been upgraded to MAAA (stable0 from MAA+ by rating agency ICRA (NSE 0.48 %.)”
The company further said, “The outlook on the long-term rating is reaffirmed at AA+ stable.”
As of March 2018, the funding profile of the company is expanded with 31 percent and 33 percent of the total borrowings coming from NHB refinance and debentures respectively.
The company further added, “Sundaram Home Finance has a deposit base of Rs 1,042 crore. As fixed deposits contribute to 15 percent to the funding mix. For the previous year, there was a gross addition of Rs 387 crore.
Interest rates on fixed deposits have been revised by 50 basis points by Sundaram Home Finance.
According to the new revision, for deposits up to 18 months, senior citizens would get eight percent per annum, for deposits up to 36 months, 8.25 percent, and 7.75 percent for deposits of up to 60 months.
Also in the case of Trusts, for 36 months deposit, they will get interest rates of 8.25 percent per annum.
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