Cholamandalam Investment & Fin. Co. is one of the premier diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans and corporate mortgage loans.
In 3QFY20, AUM growth slowed down from 24% YoY in the prior quarter to 21% YoY in 3QFY20. While Loan Against Property (LAP) AUM growth has been steady at 16-17% YoY, vehicle finance AUM growth moderated from 24% YoY to 19% YoY.
GNPL ratio increased across segments: Vehicle Finance – 2.7% v/s 2.35% QoQ, Home Equity – 6.0% v/s 5.9% QoQ and Home Loan - 3.7% v/s 3.8% QoQ.
Over the past nine months, CIFC has heavily curtailed its M&HCV disbursements. In M&HCVs, customers have slowly started repaying EMIs in January. However, their struggle will continue for at least 8-9 months.
CIFC stands out from its peers as there is no state-level concentration – the largest state accounts for only 11% of total portfolio. While CIFC has managed to deliver 20%+ disbursement and AUM growth in the past, it is expected to slow down to ~15% over the medium term.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
Found this insight useful?
Please share with your friends and family as well. You can also subscribe to one of our channels listed at the bottom of this page.