NEWS & ADVICE : PERSONAL LOAN
Gold loan biz to see new entrant in Cholamandalam
By Vaibhav Aggarwal
May 9, 2011
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Non banking finance company, Cholamandalam Investment and Finance Company Ltd (CIFCL) is planning to make an entry into the gold loan business. For the initial phase, the company plans to focus on states like Andhra Pradesh, Tamil Nadu and Kerala which are the major contributors to the gold loan business in India.

"We are starting the business as a pilot. After 6-7 months, based on the outcome, we will scale it up including setting up exclusive branches for gold lending," informed Arul Selvan, senior vice president and CFO, CIFCL.

For the last fiscal, the company posted a net profit of Rs 84.58 crore which is a 61% growth over figures posted a fiscal prior to that.

The current capital adequacy ratio (CAR) of the company is 16.7% presently. "To improve our CAR, we are planning to raise around Rs 300-500 crore, as tier II capital, through perpetual subordinated bonds," he said.

"Our vehicle finance already touched 60 per cent level. This will allow us to get the status, which will help us to raise more money through debt," he said.


 


(Comments Posted : 2) Post Your Comments
1. 20 years exp in banking,2 yrs in micro finance, 4 yrs in KYC verification,now working in SCUF Gold Loan.
Rajarajeswaran.PL (Posted: Jan 26, 2012)
2. i will worked in cholamandalam jewal loan
jeganathank (Posted: Jan 7, 2012)
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