Cholamandalam Investment Q3 net up 5% at Rs 409 cr, disbursements rise 6%

AUM up 16% to Rs 75,813 cr; Net NPA without Supreme Court dispensation at Rs 1,404 cr vs Rs 937.9 cr a year ago

Cholamandalam Investment and Finance Company Ltd (CIFCL), part of Murugappa Group, has reported a five per cent increase in net profit at Rs 409 crore during the quarter ended December 2020, as compared to Rs 389 crore, a year ago. 

During the third quarter of 2020-21, disbursements rose by six per cent to Rs 7,926 crore from Rs 7,475 crore the previous year, while AUM rose by 16 per cent to Rs 75,813 crore from Rs 65,992 crore

Net NPA without Supreme Court's dispensation stood at Rs 1,404 crore vs Rs 937.9 crore, In Compliance with Supreme Court Order, while  Gross NPA without SC dispensation was at Rs 2,485.7 crore vs Rs 1,703.3 crore In Compliance with Supreme Court Order.

CIFCL's asset quality as at end of December 2020, represented by Stage 3 assets stood at 2.57% with a provision coverage of 44.94%, as against 3.54% as at end of December 2019 with a provision coverage of 32.95%. 

The company continues to carry additional provision of Rs. 751 crore for future contingencies as on 31st December 2020. 

The total provisions currently carried against the overall book is 3.09% as against the normal overall provision levels of 1.75% carried prior to the Covid-19 pandemic, representing an increase of above 75%.

The Capital Adequacy Ratio (CAR) of the company as on  December 31, 2020, was at 19.25% as against the regulatory requirement of 15%.