Money & Banking

Cholamandalam posts 28% rise in Q3 net; AUM crosses ₹65,000 crore

Our Bureau Chennai | Updated on January 23, 2020

Cholamandalam Investment & Finance Company Ltd (CIFCL) has posted a 28 per cent growth in its net profit to ₹389 crore for the third quarter ended December 31, against ₹304 crore in the year-ago period, supported by growth in revenues.

The company’s total income grew 25 per cent to ₹2,275 crore (₹1,826 crore).

Aggregate disbursements saw a dip of 2 per cent to ₹7,475 crore (₹7,644 crore).

In the vehicle finance business, disbursements fell to ₹5,949 crore (₹6,277 crore) due to a growth contraction in the commercial vehicle segment during the December quarter.

The home equity segment, too, reported a decline in disbursements at ₹908 crore (₹954 crore).

“In Q3 of FY20, faced with a slowdown in the auto sector, we changed our product mix to shore up our net interest income. Accordingly, we were able to grow our AUM at over 25 per cent and PAT at over 28 per cent. While doing this we were able to contain our Stage 3 levels at 3.5 per cent, which is a reflection of our asset quality,” Arun Alagappan, Managing Director, said in a statement.

CIFCL’s assets under management (AUM) grew 25 per cent to ₹65,992 crore (₹52,591 crore).

The CIFCL board has approved the appointment of Ravindra Kumar Kundu, President & Business Head - Vehicle Finance, as an Executive Director of the company for five years with immediate effect. He has been with the company since 2000, the statement said.

Published on January 23, 2020

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