Cholamandalam DBS posts 85 per cent growth in Income and 96 per cent growth in Disbursements in 2006-07. Declares 40 per cent dividend

Chennai, 25 April 2007: Cholamandalam DBS has posted a growth of 85 per cent in its top line to Rs. 409.14 Crore for the year 2006-07. The total disbursement recorded was up by 96 per cent from the last financial year. The growth in income and disbursement is a result of aggressive growth in the Vehicle Finance and Corporate Finance business. Substantial contribution to the growth in disbursement was also from the new businesses of Personal Loans and Home Equity Loans.

The Company's managed asset base grew by 77 per cent to Rs. 4,474 Crore. The Profit Before Tax has increased to Rs.47.27 Crore from Rs.46.04 Crore, after considering all initial establishment and launch expenses of the Personal Loans and Home Equity Loans Business.The new businesses are expected to start adding to the bottom line in the coming year.

The company posted a growth of 189 per cent in Income to Rs.159.89 Crore for the quarter ended March 07, over the corresponding period of the previous year. The PBT increased by 274 per cent during the last quarter over the same period last year.

Speaking on the occasion, Atul Pande, Managing Director said, “this quarter and this year’s results continue to demonstrate our changing business model in our NBFC business. We have a wider product platform, and our revenue across all products have demonstrated growth potential. Our risk and credit platform is being built for more robust delivery so that we are well positioned for future growth and business opportunities. Inspite of significant investment in the launch of our new businesses, our operating PBT in 2006-07 increased by 39 per cent over the profits of 2005-06, net of one time gain accrued in 2005-06.”

About Cholamandalam DBS Finance Limited
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 BSE and NSE.

Headquartered in Chennai, the $1.6 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 theSingapore 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