Cholamandalam Investment disburses Rs 3,866 cr loans in FY10

Cholamandalam Investment Finance Company, group firm of $3-billion Murugappa Group today said it has disbursed vehicle finance and home equity loans of Rs 3,866 crore for the year ended March 31, 2010.

"The company has disbursed loans of Rs 3,866 crore in vehicle finance and home equity business for the period ending March 31, 2010, as against Rs 2,003 crore disbursed in the same verticals of the previous year," CIFC Chairman M A Alagappan said at the company's annual general meeting here.

He said the balance sheet on loan book as on March 31, 2010, grew to Rs 5,489 crore, from Rs 4,555 crore as on March 31, 2009.

Managed assets (net provisions) in the period also grew to Rs 6,850 crore, as against Rs 6,001 crore as on March 31, 2009.

Aggregate disbursements of Rs 3,866 crore was the highest by the company in vehicle finance and home equity verticals. He termed overall business performance as 'satisfactory'.

On vehicle finance business, he said loan disbursements grew 90 per cent to Rs 2,861 crore as on March 31, 2010.  The growth in the new commercial vehicle disbursements in terms of units financed was 138 per cent over the previous year, against the industry's growth of 38 per cent, he said.

On the home equity business, he said business grew by 100 per cent to Rs 1,004 crore for the year ended March 31, 2010, as against Rs 501 crore for the same period last year.

The asset book grew at 96 per cent and stood at Rs 1,455 crore as on March 31, 2010, he said.

On the future outlook, he said,"the year 2010-11 began well with the third generation (3G) telecom spectrum options ending in huge success with a better-than-expected bids".

"The year is also likely to see implementation of much awaited GST (Goods and Services Tax)which is expected to add a fillip to the growth momentum. The commercial vehicle industry, which experienced growth would continue to grow at the same rate," he said.

With the economy is expected to do well, the company expected to further consolidate its position as a premier NBFC (Non-Banking Finance Company) engaged in Asset financing business.

With a much focused efforts on Collections, the residual part of the personal loan receivables is expected to run off during the current financial year, he said.