RECORD DISBURSEMENTS AND FINANCIAL PERFORMANCE
Total disbursements for the year crossed Rs 1 lakh crore for the first time, rising 14 per cent to Rs 100,000 crore. Total income grew 36 per cent to Rs 26,055 crore, while profit after tax rose 24 per cent to Rs 4259 crore. In the company’s latest annual report, Vellayan Subbiah, Executive Chairman of Chola, said, “As we prepare to cross Rs 2 lakh crore in AUM, we remain confident that our proven business model, strong execution and committed team will continue to set new benchmarks. Our presence in high-impact sectors like vehicle finance, consumer lending, affordable housing and SME lending, combined with our new ventures in consumer durables and gold loans positions us well for long-term growth.”
Since 2010, the company’s market capitalisation has grown from Rs 623 crore to Rs 1.27 lakh crore, reflecting its strong transformation and growth trajectory. Chola’s financial strength is further supported by a Capital Adequacy Ratio of 19.75 per cent, improving asset quality (with Gross NPA at 3.97%) and a stable funding base. Subbiah also highlighted the resilience of the flagship Vehicle Finance division, which recorded disbursements of Rs 53,922 crore, a 12 per cent increase over the previous year. The vehicle finance AUM stood at Rs 101,257 crore of March 2025.
PROVEN MODEL WITH LONG-TERM POTENTIAL
“Our focus on the middle-of-the-pyramid customer segment, particularly small road transport operators and first-time buyers, has helped us stay agile. Notably, 65 per cent of our commercial vehicle disbursements supported small and micro enterprises, including agri-based customers. In the passenger vehicle segment, 66 per cent of our disbursements were to existing Chola customers and those engaged in agriculture and commercial activity,” he added.
Vellayan reiterated that Chola’s presence across high-impact segments like vehicle finance, consumer lending, affordable housing and SME lending along with forays into new areas such as consumer durables and gold loans, will drive the company’s next phase of expansion.
CONSUMER DURABLES FINANCE GAINS TRACTION
Ravindra Kumar Kundu, Managing Director of the company, noted that to meet evolving customer needs, Chola has entered the consumer durable and gold loan segments. The consumer durables financing business, which was carved out from the consumer and small enterprise loans division to bring sharper focus and accountability, has partnered with leading mobile and electronics OEMs. This initiative serves a dual purpose: financing aspirational, first-time buyers and contributing to broader financial inclusion.
In FY25, this business expanded its presence to 22 states through 54,000 dealers and increased its market share. According to industry estimates, the consumer durables financing market is expected to grow at a CAGR of 20 per cent – 25 per cent over the next five years. Additionally, India’s consumer electronics and appliances sector is projected to become the fifth-largest globally by the end of 2025.
Chola has also launched gold loans as a new line of business, guided by a two-pronged strategy. First, approximately 35 per cent of the company’s existing customers already avail gold loans, making it a logical extension that strengthens customer relationships. Second, around 45 per cent of gold loan seekers are typically “new to credit,” giving Chola the opportunity to bring more individuals into the formal financial system.
The company is targeting a gold loan book of Rs 1000 – Rs 1500 crore over the next couple of years. The new offering will be rolled out in over 100 branches, with an initial focus on southern and eastern India. “Our expansion remains calibrated, with transparency and customer experience at the core of our approach,” said Kundu.
Meanwhi l e , Cho l a w i l l s e e k shareholders’ approval at the upcoming Annual General Meeting to enhance its borrowing limit to Rs 300,000 crore, in line with its expanding operational needs. At the AGM held on 1 August 2023, shareholders had approved a borrowing cap of Rs 200,000 crore. With business requirements increasing, the company now proposes to raise this limit by an additional Rs 100,000 crore.
As of 31 March 2025, Chola’s outstanding borrowings stood at Rs 174,946.11 crore. “This portfolio is well-diversified to ensure stability and flexibility, backed by a conservative asset-liability management approach and liquidity coverage ratios that consistently exceed regulatory norms,” Kundu added. n