Assets rose 42% year-on-year to ₹1.22 lakh crore from ₹ 86,703 crore a year earlier.
Total disbursements rose 50% to ₹20,015 crore during the quarter from ₹13,329 crore a year ago led by an identical 32% growth in its vehicle finance and loan against property (LAP) business.
Net income increased 30% YoY ₹2,127 crore despite a 77% increase in finance costs largely because loan growth made up for the higher cost of funds. Net non-performing assets (NPA) dropped to 2.82% in June 2023 from 3.11% in March 2023.
“Profit before tax grew 27% as compared to overall asset growth of 42% because the cost of funds was lowest in Q1 of FY 23 and progressively increased over the subsequent quarters. Vehicle Finance book is a fixed rate book whereby repricing of the portfolio happens progressively, as the proportion of the new book is replaced with higher yield book,” Chola said in a press release.
The company’s board has approved capital raising by way of qualified institutional placements. It is targeting to raise ₹ 4000 crore subject to necessary approvals.
The company said it holds a cash balance of ₹7,069 crore at the end of June 2023.