Cholamandalam Investment and Finance Q1 Net Profit Surges by 28%

2 Aug 2023 , 02:44 PM

Cholamandalam Investment and Finance Company Ltd reported a 28% rise in standalone net profit for the April-June quarter. The company’s net profit increased to Rs 726 crore, up from Rs 566 crore in the year-ago period.

Interest income also rose to Rs 3,849 crore from Rs 2,612 crore in the same quarter last year. The bank witnessed improvement in asset quality, with gross non-performing assets (NPAs) easing to 4.30% of gross advances by June 2023 from 6.31% a year ago

The net NPA declined to 2.82% against 4.43% in the year-ago period. The provision coverage ratio improved to 35.55% as of June 2023 compared to 31.16% at the end of the first quarter of the last fiscal year.

The board approved the issuance of equity shares or convertible securities through qualified institutions’ placement to eligible, qualified institutional buyers, up to Rs 4,000 crore in one or more tranches.

The board also approved the proposal for issuing secured or unsecured redeemable non-convertible debentures aggregating to Rs 38,000 crore in one or more tranches on a private placement basis.

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