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Sowmya Sundar

SUNDARAM Finance has reduced its interest rate on fixed deposits by 50 basis points across-the-board. Investors looking at a safer fixed income option can still consider locking in their funds in the fixed deposit programme of Sundaram Finance as the rates are in line with the market rates.

The company has a good track record and reputation for timely interest payment and repayment of principal.

The strong fundamentals and better business prospects due to the opportunities in the auto sector could improve profitability and cash flows. An investment in any of the options can be considered.

Schemes and features: Sundaram Finance offers cumulative and non-cumulative deposit schemes. Under the latter, the interest is paid at quarterly and monthly rests.

The monthly payment option is available for three-year deposits only. Fresh deposits will now attract an interest rate of 6.5 per cent for one year, 7 per cent for two years and 7.5 per cent for three years.

The minimum deposit for each of these schemes is Rs 10,000.

Further details can be obtained from the head office at 21, Patullos Road, Chennai - 600 002.

In line with the market trend, Sundaram Finance consciously reduced its exposure to the corporate sector and raised it in the retail segment.

It maintained its market share in the commercial vehicle segment despite stiff competition.

Total disbursements grew 25 per cent for 2003. It has also reduced its non-performing assets.

Net NPA in the retail vehicle segment stood at 0.34 per cent of the retail portfolio, and net NPAat 1.45 per cent of total business assets as against 2.37 per cent for the previous year.

For the year ended March 2003, revenues edged up 2 per cent and the net profit rose 13 per cent. However, revenues picked up in the last quarter and recorded a 11 per cent growth.

Given the better prospects for the commercial vehicle industry, the strong fundamentals and track record, one can consider an investment up to three years in the fixed deposit programme of Sundaram Finance.

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