Cholamandalam Q3 net up 53% to Rs 249cr on healthy loan growth

Financial services company, Cholamandalam Investment and Finance, today reported a 53 per cent jump in its net profit at Rs 249.20 crore for the quarter ended December 31.
The company had reported a profit after tax of Rs 162.52 crore in the year-ago period.
"Healthy loan disbursements, reduction in loan losses and fall in cost of funds helped net profit grow by 53 per cent in the quarter," the company's chief financial officer Arul Selvan said.
Aggregate disbursements grew 55 per cent to Rs 6,761 crore in the period from Rs 4,373 crore in the same period last year.
Assets under management grew by 20 per cent at Rs 40,056 crore compared to corresponding period of the last financial year, which stood at Rs 33,381 crore.

Net Income Margin (NIM) for the quarter was 9.6 per cent higher than 8.4 per cent in the corresponding quarter last year.

Gross non-performing assets of the bank stood at 3.70 per cent from 4.78 per cent, while net NPA were at 2.34 per cent as against 3.13 per cent.
"Aggressive collection efforts have started paying off. The GNPA, NNPA and provision coverage levels have improved consistently over the quarters," Selvan said.
The capital adequacy ratio (CAR) of the company as on December 31, was at 18.52 per cent, with tier 1 at 13.8 per cent and tier 2 at 4.7 per cent, as against the regulatory requirement of 15 per cent.