Cholamandalam Investment Q4 Review - Asset Quality Deteriorated; Restructured At 2%: IDBI Capital
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IDBI Capital Report
Cholamandalam Investment and Finance Company Ltd.’s asset quality deteriorated slightly as gross stage-III assets stood at 3.96% versus 3.75% QoQ (3.8% YoY).
However, 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 increased to 1.6% of assets versus 1.13% (Q3 FY21) due to unexpected second wave of Covid-19; earlier management guided for reversal of Covid-19 provisions.
Net interest margins declined by 20 basis points QoQ led by change in product mix resulted in lower yields.
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