Cholamandalam Investment and Finance Company Ltd will not approach the National Housing Bank (NHB) for a housing finance subsidiary licence, as it wants to continue the business with the main company, CFO Arulselvan D has told Moneycontrol in an exclusive interview.
“We are not pursuing for housing finance subsidiary licence because we will continue doing housing finance from the main company,” the Cholamandalam Investment and Finance president and Chief Financial Officer said.
On December 20, 2017, the board of directors approved setting up of a housing finance company subsidiary and gave the go-ahead to send a licence application to NHB.
Selvan said the company would continue to grow the business in the housing finance segment with the main company.
In June quarter, the company disbursed Rs 1,778 crore worth of home loans, 22 percent up from the year-ago period. Disbursements in the last three financial years grew by 83 percent CAGR, according to an investor presentation.
Total assets under management (AUM) in the home loan segment jumped 10 percent annually to Rs 10,456 crore in the June quarter.
Profit before tax of the home loans segment grew 88 percent on-year to Rs 163 crore in April-June quarter. Whereas, income rose 62 percent on-year to Rs 558 crore.
Net income margin of home loan segment also rose to 8.8 percent in the June quarter, from 7.7 percent in the similar quarter last year.
Cholamandalam Investment and Finance Company has reported a 29.8 percent year-on-year jump in net profit at Rs 942.23 crore for the June quarter.
Sequentially, the net profit was down from Rs 1,058.1 crore in the March quarter.
The net interest income jumped 40 percent to Rs 2,573 crore, according to the stock filing.
Its gross non-performing assets (NPAs) were at 3.62 percent against 3.54 percent in the March, while the net NPA came in at 2.37 percent against 2.32 percent in the March quarter.
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