Cholamandalam Q1 profit jumps 25%

Disburses ₹3,819 cr. in vehicle finance

Updated - July 27, 2017 09:27 pm IST

Published - July 27, 2017 09:20 pm IST - CHENNAI

Cholamandalam Investment and Finance Co. Ltd., (Chola) reported a 25% increase in its standalone net profit for the first quarter ended June 30, 2017 at ₹207 crore against ₹166 crore recorded in the corresponding year-ago period.

During the period under review, the company reported a total revenue of ₹1,235 crore against ₹1, 109 crore.

It disbursed ₹3,819 crore in its vehicle finance business against ₹3,326 crore, recording a growth of 15%.

Home equity disbursements declined to ₹740 crore from ₹991 crore. Chola’s net interest margin stood at 8% against 7.1% in the comparable period last year. It had a capital adequacy ratio 19.37%.

Focus on collections

“We continued our enhanced focus on collections. The company was able to ride out the traditionally difficult first quarter by restricting the gross non-performing asset at 4.7% (at three months’ overdue) and net non-performing asset at 3.2% and maintaining the same levels as of March 2017,” said Vellayan Subbiah, MD, Chola.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.