The company’s net interest income (NII) rose 30% on-year to ₹3,056 crore, although it was marginally lower than CNBC-TV18 poll estimate of ₹3,082 crore.
remained stable during the March quarter on a sequential basis.
Alongside its fourth quarter results, the Murugappa Group enterprise said that it will foray into the gold loan industry in select geographies.
However, the company has not specified the quantum of the expansion, or the regions that it plans on marking its presence in. Cholamandalam is predominantly present in the Southern part of the country.
The announcement from Cholamandalam comes just a week after Poonawalla Fincorp announced its foray into the industry. The company intends to open 400 new branches across the next four quarters in tier-2 and tier-3 cities.
Last month, Piramal Finance, the lending arm of the Piramal Group, announced its intentions to foray into this business, according to a Business Standard report.
Cholamandalam follows L&T Finance and InCred who entered this business earlier this year. InCred had forayed into this business through the acquisition of TruCap Finance’s gold loan business. L&T Finance acquired Paul Merchant Finance’s gold loan business in a ₹537 crore deal in February.
Following the earnings announcement, shares of Cholamandalam Investment and Finance ended 1.2% lower on Friday at ₹1,528.6.