D Arul Selvan, Chief Financial Officer, CIFCL
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Cholamandalam Investment and Finance Company (CIFCL) is optimistic of 22-23 per cent growth in assets under management (AUM) in FY27, aided by broad-based disbursement growth in Q1FY27 and easing macroeconomic concerns, a senior company executive said.Disbursement growth in Q1 was broad-based across business segments, with vehicle finance continuing to outperform the industry, D Arul Selvan, Chief Financial Officer, CIFCL, told businessline. Vehicle finance registered growth of around 19-20 per cent, while newer businesses also recorded healthy expansion, taking overall business assets growth to about 22 per cent.“The West Asia war does not seem to have impacted much of the vehicle finance. The industry overall has grown, but we have of course grown faster than the industry,” he said. The deficit expected in the monsoon has also come down; we will have to wait till July ends and then we will be more or less confident to judge the impact of the monsoon, he added.CIFCL on Tuesday had reported a net profit of ₹1,654 crore for the quarter ended June 2026 (Q1FY27), up 46 per cent y-o-y from the same quarter last year.Profitability was aided by a 28 per cent y-o-y growth in net income for the quarter, which stood at ₹4,930 crore compared to ₹3,865 crore in the same period last year. Net interest margins (NIM) improved to 8.2 per cent in June 2026, as compared to 7.8 per cent in the last year.On the emerging segment of gold loans, CIFCL expects its gold loan portfolio, currently at over ₹2,000 crore, to expand to ₹3,000-4,000 crore by the end of FY27, supported by branch expansion.Selvan believes the growth in gold loans is not merely a reflection of financial stress but also a structural shift towards organised lenders offering lower rates and greater transparency.He explained that the relatively muted growth reported in loans against property (LAP) and housing finance was primarily due to a change in the methodology for recognising disbursements. Earlier, disbursements were recognised only after loan proceeds were realised by borrowers, but the company has now shifted to recognising the asset at the time of disbursement, reducing the lag between cheque issuance and registration.Asset qualityThe lender said asset quality trends have improved, particularly in vehicle finance, where the deterioration seen in the corresponding quarters last year has moderated significantly. Seasonal factors led to a marginal increase in delinquencies during the first quarter, the rise was far lower than it was in Q1 last year, Selvan said.On fund-raising, Cholamandalam said it would continue to rely primarily on bank borrowings while maintaining flexibility through non-convertible debentures and external commercial borrowings.Published on July 29, 2026
