Sundaram Home Finance has increased the interest rates offered on its fixed deposits, with new yields ranging from 7.25% to 7.75% for tenures of three, four, and five years.
The adjustment, which took effect on August 1, provides a higher return for senior citizens compared to regular customers, reflecting the lender's strategy to attract long-term capital in a competitive funding environment.
In the first quarter ended June 30, 2026, Sundaram Home Finance reported a 37% year-on-year increase in net profit, reaching ₹85 crore, up from ₹62 crore in the same period of the previous fiscal year.
The move comes as the wholly owned subsidiary of Sundaram Finance seeks to expand its deposit base, which stood at ₹2,295 crore as of March 31, 2026.
By raising rates on medium-term deposits, the company aims to strengthen its liquidity position and support its lending book, particularly in the home finance segment where stable, low-cost funding is critical for margin management.
This rate hike follows a period of strong profitability for the lender.
In the first quarter ended June 30, 2026, Sundaram Home Finance reported a 37% year-on-year increase in net profit, reaching ₹85 crore, up from ₹62 crore in the same period of the previous fiscal year.