Cholamandalam Investment and Finance Company (Chola), part of the Rs 26,900-crore Murugappa Group, has posted a 31% rise in its net profit for the third quarter at Rs 146 crore, against Rs 111 crore in the same quarter last financial year.
Chola disbursed Rs 3,245 crore in the vehicle finance business as against Rs 2,290 crore in Q3 of FY15. “This was possible on account of strong growth in heavy commercial vehicle volumes, and also healthy growth in used vehicles,” the company said in a statement.
The home equity disbursements of Chola grew 17% to Rs 882 crore from Rs 754 crore in the year-ago period. Its aggregate disbursements for the quarter were at Rs 4,260 crore, against Rs 3,082 crore, a growth of 38%.
Chola’s net income margin (NIM) was at 8.8% for the quarter, compared to 8.2% in the same quarter of last year. The company was able to exit the quarter at a GNPA level of 4.30% at four months’ overdue, which is marginally lower than the GNPA at the end of September 2015 (4.42%), the statement said.
The board of directors has declared an interim dividend of 25% for the year ending March 31, 2016. The capital adequacy ratio (CAR) was at 20.10%, against the regulatory requirement of 15%.
The board has approved a proposal to invest close to Rs 8 crore in White Data Systems India (White Data) towards acquiring a controlling stake of 63%. White Data is in the business of providing holistic freight data solutions. According to the statement, this investment is expected to leverage synergies for the company and its customers.
The board has also approved to invest an additional Rs 75 crore in equity shares of the wholly owned subsidiary, Cholamandalam Distribution Services, for setting up payment bank operations.