Cholamandalam Investment And Finance Company Q1 Profit Rises By 28% To Rs 726 Crore

Non-banking finance company Cholamandalam Investment and Finance Co. on Tuesday reported a 28% rise in standalone net profit at Rs 726 crore in the April-June quarter.

The Chennai-based lender had posted a net profit of Rs 566 crore in the year-ago period.

The total income in the first quarter of the current fiscal rose to Rs 4,134 crore against Rs 2,771 crore, Chola said in a regulatory filing.

The lender's interest income also increased to Rs 3,849 crore from Rs 2,612 crore in the same quarter a year ago.

On the asset quality side, the bank witnessed improvement with the gross non-performing assets easing to 4.30% of the gross advances by June 2023 from 6.31% a year ago.

The net NPA too declined to 2.82% against 4.43% in the year-ago period.

Provision coverage ratio of the bank improved to 35.55% as of June 2023 as against 31.16% at the end of first quarter of last fiscal.

The board of the company approved issuance of equity shares or convertible securities by way of qualified institutions placement to eligible qualified institutional buyers up to an amount not exceeding Rs 4,000 crore in one or more tranches.

Besides, the board has cleared the proposal for issue of secured or unsecured redeemable non-convertible debentures aggregating to Rs 38,000 crore in one or more tranches on private placement basis.