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For its proposed entry into the gold loan business, the company is expected to capitalise on its extensive branch network in rural and semi-urban India.
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Cholamandalam Investment & Finance has seen its total annual disbursements surpass ₹1 lakh crore in FY25, with more than half of it contributed by vehicle finance business. However, the growth rate for disbursements moderated to 14 per cent in FY25 as against 33 per cent in FY24.
The Murugappa Group NBFC also announced on Friday that it will be launching its gold loan business in select geographies. For its proposed entry, the company is expected to capitalise on its extensive branch network in rural and semi-urban India.
Total disbursements for FY25 were at ₹1,00,869 crore, compared to ₹88,725 crore in FY24, registering a growth of 14 per cent. In Q4 of FY25, disbursements grew by 7 per cent, reaching ₹26,417 crore (₹24,784 crore).
Net up 24%
The company reported a net income of ₹13,570 crore in FY25, up 36 per cent, while net profit grew by 24 per cent, reaching ₹4,259 crore. For March 2025 quarter, the company posted a net profit of ₹1,267 crore, compared to ₹1,058 crore in the year-ago quarter, an increase of 20 per cent. Net income stood at ₹3,758 crore (₹2,913 crore).
For FY25, the company’s total income rose 36 per cent to ₹26,055 crore (₹19,216 crore). Loan losses were higher at ₹2,494 crore (₹1,322 crore). Profit before tax stood at ₹5,737 crore (₹4,582 crore).
The Board has recommended a final dividend of ₹0.70 per share (35 per cent) on the equity shares of the company. This is in addition to the interim dividend of ₹1.30 per share (65 per cent) declared earlier for FY25.
Vehicle, loan segments
The company’s vehicle finance segment recorded a 12 per cent increase in disbursements, rising to ₹53,922 crore in FY25 from ₹48,348 crore in FY24. The loan against property business also grew by 32%, with disbursements increasing from ₹13,554 crore to ₹17,913 crore.
Meanwhile, the home loan segment reported a 16 per cent rise in disbursements. In the small and medium enterprise (SME) loan business, disbursements declined to ₹7,763 crore. In Q4FY25, disbursements also declined to ₹1,733 crore (₹2,136 crore). “The drop in disbursements in this segment is due to the conscious decision to slow down on low ROTA products such as supply chain Finance,” the statement said.
The consumer and small enterprise loans (CSEL) segment reported a drop in disbursements to ₹2,328 crore in Q4FY25 (₹3,301 crore), while FY25 disbursements increased by 11 per cent. “The drop in disbursements in CSEL in Q4 is due to the conscious decision to progressively exit from fintech partnership-led volumes,” it added.
The company’s gross non-performing assets (NPA) stood at 3.91 per cent as of March 31, 2025, compared to 3.54 per cent as of March 31, 2024. The net NPA also increased from 2.32 per cent to 2.63 per cent. Its assets under management grew by 30 per cent, reaching ₹1,99,876 crore as of March 31, 2025.
Published on April 25, 2025
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