Cholamandalam Investment and Finance Company (Chola), part of over Rs 38,000-crore Murugappa Group, on Friday reported a profit after tax (PAT) of Rs 409 crore for the third quarter of FY21, compared with Rs 389 crore in the year-ago period, recording a growth of 5%. Total income rose 10% to Rs 2,505 crore, against Rs 2,275 crore.
Aggregate disbursements in Q3 were at Rs 7,926 crore, compared with Rs 7,475 crore, registering a growth of 6%. The vehicle finance business clocked a volume of Rs 6,084 crore, against Rs 5,949 crore, an increase of 2%. The loan against property business disbursed Rs 1,265 crore, against Rs 908 crore, with a growth rate of 39%. The home loan business grew at 8%, disbursing Rs 434 crore compared with Rs 400 crore.
Assets under management at the end of December grew 15% to Rs 75,813 crore, compared to Rs 65,992 crore a year ago. Chola in a statement said the company continues to hold strong liquidity position with Rs 6,228 crore as cash balance as of December 31, 2020, including Rs 1,500 crore invested in GSec.
The asset quality represented by Stage 3 assets stood at 2.57% with a provision coverage of 44.94%, as against 3.54% with a provision coverage of 32.95%. Chola continues to carry additional provision of Rs 751 crore for future contingencies.
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