MUMBAI • Temasek-backed Fullerton India, a non-banking financial company, will inject 1.5 billion rupees (S$32 million) as equity capital in its new housing finance subsidiary.
Fullerton India Home Finance Company will initially focus on giving loans to the tune of two million rupees and above, its managing director, Mr Shantanu Mitra, said.
"The funds received will be used for investment in the company's housing finance subsidiary... and for the future growth requirements of Fullerton India," the company said in a release on Tuesday.
Fullerton India received money for investment in the subsidiary from its parent, Fullerton Financial Holdings, a fully owned unit of Temasek Holdings. The home finance company will focus on four states - Maharashtra and Gujarat in western India, and Tamil Nadu and Karnataka in the south - during the early phase, Mr Mitra said.
The plan is to extend loans through 190 to 200 branches over the next few years. At a later date, the company would also enter into the affordable housing finance segment, he was quoted as saying by Business Standard.
Fullerton India's net profit in the half-year ended September stood at 1.84 billion rupees, up from 1.24 billion rupees in the same period last year.
Its assets under management grew by 37 per cent to 98.91 billion rupees at the end of September from 72.25 billion rupees a year ago.
The company currently employs more than 7,600 employees across 445 branches servicing 1.2 million customers. Nearly 60 per cent of the workforce serve its rural business.
Fullerton India's product portfolio includes loans against property, small and medium-sized enterprise and business loans, commercial vehicle and two-wheeler loans, and personal loans, Business Standard reported.