Cholamandalam DBS records 114 per cent growth in revenue for the quarter ended December'06

24 January, 2007: Cholamandalam DBS Finance Limited records a growth of over 114 per cent in revenue over the corresponding period last year. The revenue stands at Rs.109.25 crore during the quarter October - December 2006 as against Rs.50.89 crore during the same period in the previous financial year.

The company posted a growth of 141 per cent in retail disbursements during the period October - December 06 over the corresponding period of the previous year. The retail disbursements in the quarter October-December 2006 was at Rs. 746 crore, up from Rs.310 crore during the same period last year. The Corporate Finance float increased to Rs. 700 crore in the quarter ended December 06 from Rs.309 crore during the same period last year.

Profit Before Tax (PBT) for the quarter was up by 18 per cent at Rs. 10.78 crore as compared to Rs.9.10 crore during the same period in the year 2005. The growth in profits is after accounting for all expenses of the New Business of Personal Loans and Home Equity Loans.

Cholamandalam DBS Finance Limited, launched its Personal Loans business in January 2006 at Chennai, Bangalore, Hyderabad and Coimbatore. Today the Personal Loans business operates from 24 cities and more than 46 exclusive neighbourhood branches across India.

Home Equity Loans business was launched in October 2006 and is currently operational in Chennai, Bangalore, Hyderabad and Coimbatore. Cholamandalam DBS plans to offer the product across India in the next 6 months.

Speaking on the occasion, Mr. Atul Pande, Managing Director, Cholamandalam DBS Finance Limited said "This quarter's result is a testimony of the changing approach in our Vehicle Finance Business. The Company has reworked its sourcing model to address the medium and sub-prime customers in a consolidated risk frame work. Our new businesses in consumer finance are building a mass consumer platform. We are now well poised for the 2nd phase of expansion by further strengthening our distribution deeper in to the Market."

In the board meeting held on January 24th 2007, the board approved a capital infusion plan of Rs. 200 crore by the way of rights issue of Shares, to support the expansion plans of the company.

Cholamandalam 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 such as, Personal Loans, Vehicle Finance, Home Equity Loans, 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.

Headquartered in Chennai, the $1.63 billion Murugappa Group is India's leading business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies, which are market leaders in diverse areas on business viz. engineering, abrasives, finance, general insurance, sanitaryware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states in India.

Headquartered in Singapore, DBS Group Holdings Ltd is the holding company of DBS Bank and is one of the largest companies in terms of market capitalisation whose shares are listed on the Singapore Exchange. DBS Group and its subsidiaries form one of the largest banking groups in the region in terms of shareholders' funds and total assets as at 31 December 2005, being approximately S$16.7 billion and approximately S$180.2 billion. DBS is the fifth largest banking group in Hong Kong by assets. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India, China and The Philippines. The Bank's credit ratings are one of the highest among banks competing in the Asia-Pacific region, and in Singapore.

Contact Information

Atul Pande
Managing Director
Cholamandalam DBS Finance Limited
Tel: 044-25307172