Cholamandalam Investment and Finance Company (Chola), the financial services arm of the Murugappa Group, on Tuesday reported a net profit of `684 crore for the third quarter of FY 23 as compared to Rs 524 crore in the corresponding quarter last fiscal, registering a growth of 31% on the back of best-ever disbursals. Total income of the Chennai-based company stood at Rs 3,375 crore, logging a growth of 32% over Rs 2,547 crore in the same period last year.
The company in a statement said it has delivered the best-ever disbursals, collections, and profitability in Q3 FY23 while Chola gained market share across product segments in vehicle finance and other business units.
Aggregate disbursements in Q3 FY 23 were at Rs 17,559 crore as against Rs 10,430 crore with a growth of 68%. Out of it, vehicle finance disbursements were at Rs 10,446 crore as against Rs 7,647 crore, registering a growth of 37%. Loan against property vertical disbursed Rs 2,255 crore as against Rs 1,661 crore, logging a growth of 36% while home loan segment disbursed Rs 1,072 crore as against Rs 539 crore, registering a growth of 99%.
Small and medium enterprises loans (SME) disbursed Rs 1,782 crore registering 273% growth over Rs 478 crore while the consumer and small enterprise loans (CSEL) disbursed Rs 1,868 crore. The secured business and personal loan (SBPL) disbursed Rs 137 crore. Assets under management stood at Rs1,03,789 crore as compared to Rs 79,161 crore.
The company continues to hold a strong liquidity position with Rs 7,396 crore as cash balance as of December 2022 (including Rs1500 cr / Rs1700 cr invested in Gsec / TBill shown under investments), with a total liquidity position of Rs 10,104 crore (including undrawn sanctioned lines). The ALM is comfortable with no negative cumulative mismatches across all time bucket, it said. The board of directors of the company approved the payment of interim dividend of 65% being Rs1.30 per share on the equity shares for the year ending March 31, 2023.
Chola’s asset quality, represented by stage 3 assets stood at 3.51% with a provision coverage of 40.96%, as against 3.84% as at end of September 2022 with a provision coverage of 41.48%. The total provisions currently carried against the overall book is 2.45% as against the normal overall provision levels of 1.75% carried prior to the Covid-19 pandemic. As per revised RBI norms GNPA% and NNPA% as of December 2022 is at 5.37% and 3.69% respectively.
The capital adequacy ratio (CAR) of the company was at 17.75% as against the regulatory requirement of 15% while tier-I capital was at 15.12%.