Cholamandalam Investment and Finance Co. Ltd. (Chola), the financial services arm of ₹29,500 crore Murugappa group, has posted 15% increase in its standalone net profit of ₹220 crore for the fourth quarter ended March 31, 2017 against ₹192 crore for the corresponding period last year.
Net income margin of the company grew by 10% from ₹603 crore to ₹666 crore. The net interest margin as percentage of assets stood at 9.34% against 9.39% in the comparable period. Total income from operations stood at ₹1,213 crore against ₹1,135 crore.
Gross non-performing asset and net non-performing asset (on three months overdue basis) stood at 4.7% and 3.2% respectively against with last quarter level of 4.8% and 3.1% respectively.
The capital adequacy ratio of the company stood at 18.64% and tier-I capital at 13.61% respectively.
The disbursement under the vehicle finance business grew by 17% to ₹4,407 crore from ₹ 3,760 crore. However, Home Equity disbursement declined by 45% from ₹994 crore to ₹544 crore. Chola’s aggregate disbursements for the quarter were ₹18,591 crore against ₹16,380 crore.
Cholad Board of Directors recommended a final dividend of 20%. With this, the total dividend works out to 55%, says a company release.