• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

Mr M. Anandan, Managing Director, Cholamandalam Investment and Finance Company Ltd, talking to mediapersons in Hyderabad on Tuesday. _ A. Roy Chowdhury

Hyderabad , Dec. 30

CHOLAMANDALAM Financial Services Group (Cholamandalam FSG), the Chennai-based non-banking finance company (NBFC) from the Rs 4,200-crore Murugappa stable, has said converting the NBFC into a bank "could be an option" but "there is no proposal as of now in that regard."

Mr M. Anandan, Managing Director of Cholamandalam Investment & Finance Company Ltd (CIFCL), told newspersons here on Tuesday, that "As of now we are happy to be an NBFC. But as we go along that could be an option. Turning into a bank would give us the ability to attract capital, resources, shareholders and human resources better. But being an NBFC means less control of Reserve Bank of India," he said.

The Cholamandalam-MS (Mitsui Sumitomo) Insurance Company Ltd, a joint venture general insurance company with Japanese insurance major Mitsui Sumitomo, has targeted a premium of Rs 100 crore in the first full year. "In the first eight months, it could notch up Rs 60 crore premium income," he said.

The insurance arm, which has 11 offices, would have six more in the next quarter.

"We are also looking at improving the rural insurance portfolio," he said. Stating that the NBFC has assumed a pan-Indian profile, he said the non-South component crossed the 50-per cent mark. "We operate from over 160 locations. Our high-quality portfolio is reflected in our non-performing assets (NPAs) which stands at 1 per cent, is amongst the lowest NPA levels," he said.

"In Andhra Pradesh we operate out of 20 places, including the major cities. Last year, the disbursals were to the tune of Rs 100 crore," he said.

He said the company was looking at Andhra Pradesh with "a lot more interest."

Article E-Mail :: Comment :: Syndication

Stories in this Section
Reality check on the real economy

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line