Cholamandalam DBS Posts 15% Growth in Disbursements in
2005-06
Declares 50% dividend
Chennai, April 24, 2006: Cholamandalam DBS Finance Limited (Chola DBS) has posted a growth of 15% in the year 2005-06 in the disbursements of its core products - commercial vehicles, multi-utility vehicles and cars. Total disbursements for all categories of vehicles stood at Rs. 1295 crores.
The company’s gross asset base (including assets de-recognised) grew by 18% to Rs. 2309 crores. The Profit After Tax (PAT) grew to Rs. 35.20 crores, from Rs. 34.07 crores the previous year.
As on 31 March 2006, the company’s non-performing assets (NPAs) net of provisioning was 0.61% of risk-weighted assets, and the capital adequacy ratio was 14.90%, as against RBI’s requirement of 12%.
Atul Pande, Managing Director said, “The business focus for 2005-06 was to build a profitable position in the Commercial Vehicles business. Used Vehicles and 3 wheelers continued to be the key growth areas. These segments will continue to be the current year’s thrust in the Vehicle Finance business.
The 2006-07 financial year will also witness the launch of the consumer finance business of Cholamandalam DBS across the country. Personal Loans is being test marketed in parts of India. Other consumer finance products will soon be launched. I am confident that the new products combined with the inherent strengths of the Distribution Services, Mutual Funds and Securities businesses will enable Cholamandalam DBS become a comprehensive financial services provider.”
The Board of Directors at its meeting on 24 April 2006, has recommended a dividend of 50%.
Cholamandalam DBS Finance Limited (Chola DBS) is a joint venture between the Murugappa Group and DBS Bank of Singapore. The Company, along with its subsidiaries and affiliates offers individual and institutional customers a range of financial services – automobile finance, capital market finance, corporate finance, mutual funds, securities broking and distribution of investment and insurance products. The Company’s shares are listed on Bombay (BSE) and National (NSE) stock exchanges.
The Rs 6250 crores (US$1.5 billion) Murugappa Group is a pioneer and market leader in several fields with manufacturing facilities across 12 states. The Murugappa Group has a strong presence in abrasives, engineering, bio-products, sanitary ware, sugar, farm inputs, plantations and nutraceuticals. Companies in the group include Carborundum Universal, Coromandel Fertilisers, EID Parry and TI of India.
Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the Bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin, Dongguan and Hangzhou. The Bank's credit ratings are one of the highest among banks competing in the Asia- Pacific region, and the highest among banks in Singapore.
Disclaimer: Some of the statements included in this Press Release may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam and its subsidiaries. There can be no assurance that future developments affecting Cholamandalam and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are important factors that could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements.
Cholamandalam does not intend, and is under no obligation, to update any particular forward-looking statement included in this Press Release.
For further information, please contact:
Atul Pande
Managing Director
Cholamandalam DBS Finance Limited
I Floor, Dare House, Parry’s Corner,
2, NSC Bose Road, Chennai 600 001.
Tel: 044-25307172
