The Hindu Business Line : Cholamandalam to expand retail business with DBS

CHOLAMANDALAM Investment and Finance Company Ltd (CIFCL) will focus on retail business along with its new partner, DBS Bank of Singapore, with which it plans to have a 50:50 joint venture.

DBS's open offer to acquire 20 per cent of the equity shares of CIFCL is open till November 5.

"We are already a leading player in automobile financing. With DBS, we will focus on home loan and consumer financing. We will get into personal loan, home equity, and mortgage. DBS has experience in these sectors," said Mr M. Anandan, Managing Director of CIFCL.

He was speaking after announcing the second-quarter results of the company today.

Cholamandalam's net profit for the second quarter moved up by 90 per cent to Rs 16.36 crore from Rs 8.6 crore in the year-ago period.

Total income stood at Rs 64.78 crore (Rs 53.68 crore). Income included Rs 14.54 crore gained from sale of long-term investments.

The company clocked growth of 22 per cent in disbursements of automobile finance products during the first six months. The total disbursements for the period stood at Rs 619 crore. The company's gross asset base, including assets securitised, grew by 12 per cent to Rs 2,072 crore.

"Financing of commercial vehicles remains the company's focus for growth. Sales of vehicles have remained flat, but our disbursements have grown 30 per cent in heavy commercial vehicles and 24 per cent in light commercial vehicles," said Mr Anandan.

. Its capital adequacy ratio stands at 17 per cent.

"We are going to expand our business in eastern India. We will be soon starting offices in Kolkata and Bhubaneswar," said Mr M.A. Alagappan, Chairman of CIFCL.

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