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.

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