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.