Vehicle finance sector to return to pre-Covid level by Q2 next fiscal: CIFC

Murugappa group's financial services unit says bad loans are down and it expects AUM to grow 25% this financial year

Cholamandalam Investment and Finance Company (CIFC), the Murugappa group’s financial services arm, expects the vehicle finance sector to be back to the level before Covid-19 by the second quarter of the next financial year.

The company projects its assets under management (AUM) to grow by 25 per cent in this financial year. It is betting on electric vehicles in the three-wheeler segment.

“We will certainly be back to pre-Covid levels during the Q1 or Q2 of the next financial year. Progressively, we have pushed down the NPAs (non-performing assets),” said Arul Selvan D, president and chief financial officer of CIFC,