Cholamandalam net jumps 41% on better loan sales, asset quality

Mumbai: Cholamandalam Investment and Finance Wednesday reported a 41 percent rise in standalone net at Rs 304 crore in the quarter to December, helped by higher disbursements and stable asset quality.

Disbursements grew 13 percent to Rs 7,644 crore from Rs 6,761 crore led by vehicle finance business that grew 11 percent to Rs 6,240 crore.

Gross NPAs improved to 2.7 percent from 3.7 percent bringing down net NPAs to 1.5 percent from 2.3 percent.


"We were able to keep our loan loss provision down and also could have healthy disbursements," executive vice- president and chief financial officer Arul Selvan said.

The slowdown in vehicle finance was due to the stagnation in the industry volume during the quarter, the company said.

Home equity segment saw a growth of 19 percent to Rs 954 crore over the same period last year.

Assets under management grew 32 percent to Rs 52,868 crore from Rs 39,985 crore.

Selvan said the cost of funds jumped marginally to 7.4 percent from 7 percent a year ago. The Chennai based company raised Rs 1,250 crore through securitsation in the quarter and plans to raise Rs 1,000-2,000 crore in the ongoing quarter.

Its scrip ended down 2.20 percent at Rs 1,132.30 on BSE which ended flat.