Cholamandalam Investment - Higher Q3 Provisions Could Get Reversed; Restructured Assets At 2%: IDBI Capital
A man holds two thousand and five hundred Indian rupee banknotes in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Cholamandalam Investment - Higher Q3 Provisions Could Get Reversed; Restructured Assets At 2%: IDBI Capital

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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 Co.’s gross stage three assets increased by 77 basis points QoQ to 3.75% (adjusted for Supreme Court direction) and it was better than estimate.

Also, restructured assets stood at 2% of loan book; lower than guided in the range of 3-5% is the key positive.

Further, Covid-19 related provisions (Rs 7.5 billion as of December 2020) are more than sufficient on the balance sheet and management guided reversal of the same (excluding Rs 3 billion for macro).

Net interest margins improved surprisingly by 50 basis points QoQ led by change in product mix and lower cost of funds.

Click on the attachment to read the full report:

IDBI Capital Cholamandalam Investment Q3FY21 Result Update.pdf

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