BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Cholamandalam Investment and Finance Company Ltd.’s asset quality deteriorated (surprised negatively) with gross stage-III assets increased to 6.79% versus 3.96% QoQ (3.34% YoY).
Also, restructured assets increased to 5.4% of loan book; higher than its peers which is the key concern.
However, Cholamandalam Investment's management is quite confident of recovery in coming quarters which is visible in improvement in collection efficiency; July at 114% versus June at 101% versus May at 84%.
Further, Covid-19 related provisions stood at 1.0% of assets under management which should support credit cost for FY22.
Net interest margins remain stable at 7.6% QoQ.
AUM growth declined to 7% YoY (16% FY21) led by slower growth in disbursements (up 1% YoY) and higher repayments.
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