Cholamandalam Investment and Finance today reported an 18 per cent growth in net profit at Rs 110 crore in the first quarter ended June 30 on account of improvement in net interest income (NII) and curtailment in provisioning for bad loans.
The financial services company had reported a profit after tax of Rs 93.10 crore in the same period last year.
"We kept our provisioning for bad loans at lower levels. Our net interest income also improved to 8.43 per cent from 7.6 per cent on year-on-year basis," Cholamandalam Investment Chief Financial Officer D Arul Selvan said.
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The company was able to bring its cost of funds down to 10.2 per cent in the April-June period from 10.4 per cent a year ago. The gross NPA (on 5 months' overdue basis) increased to 3.33 per cent from 3.12 per cent as of March 2015.
The Murugappa Group firm disbursed Rs 2,588 crore in vehicle finance business, up from Rs 2,320 crore in the same period of last fiscal. Home equity disbursements grew by 16 per cent to Rs 831 crore from Rs 716 crore.
Cholamandalam's aggregate disbursements for the quarter were Rs 3,508 crore as against Rs 3,188 crore in the year-ago period.
