Cholamandalam DBS post's strong revenue growth in the second quarter

Chennai 24 October, 2007: Cholamandalam DBS Finance Limited records a growth of 172 per cent in Revenue over the corresponding period last year. The revenue stands at Rs214 crore during the Quarter July - Sep, 2007 as against Rs79 crore during the same period in the previous financial year.

The Profit Before Tax (PBT) were up by 273 per cent at Rs 27.46 crore as compared to Rs7.36 crore during the same period in the year 2006. The Profit After Tax (PAT) were up by 278 per cent at Rs 18.02 crore as compared to Rs4.77 crore during the same period in the year 2006.

The company posted a growth of 120 per cent in total disbursements during the period July - September, 2007 over the corresponding period of the previous year. The disbursements were at Rs 1222 crore, up from Rs 556 crore during the same period last year.

The Vehicle Finance division continues to remain the largest revenue generator for the company with disbursements growing by 62 per cent over the same quarter previous year. New and used vehicles loans grew by 54 per cent and 75 per cent respectively over the 2nd Quarter '06. Personal loans and Home Equity also continued to demonstrate high growth in their respective areas.

Personal Loans have expanded to 86 neighbourhood branches in 46 cities, across India. These branches are in addition to the existing branches of Vehicle Finance Business. Home Equity Loans business was launched in October 2006 in Chennai, Bangalore, Hyderabad and Coimbatore and now is available in 14 cities.

During this quarter the company also launched its Two Wheeler Loans business as an additional product offering in the consumer finance segment. It is currently offered in 11 cities. The company plans to expand the product offering to the other locations by the end of this Financial Year.

Speaking on the occasion, Mr. Atul Pande, Managing Director said "All our businesses continue to grow strongly, across all segments, which is demonstrated by the increasing revenue momentum in the businesses. The risk management framework continue to be enhanced and is now supporting the businesses well. We now have a comprehensive platform across the lending businesses, and with our wealth management business now operational in 40 locations, we are well penetrated to continue our growth towards a comprehensive and diversified provider of retail financial services".

"Cholamandalam DBS Finance Limited has made an issue of 14229929 equity shares of Rs10/- each on rights basis along with detachable warrants in the ratio of three shares for every eight shares held at a price of Rs140/- which is now open for subscription and has filed the letter of offer with Securities and Exchange Board of India. The letter of offer is available on SEBI's website at www.sebi.gov.in as well as on the Lead Managers website at www.enam.com. Investment in equity shares involves a high degree of risk and Investors are advised to refer to section titled "Risk Factors" of the aforementioned offer document."

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 Bombay (BSE) and National (NSE) stock exchanges.

About the Murugappa Group
Headquartered in Chennai, the USD 2 billion (Rs8500 crore) Murugappa Group is India's leading business conglomerate. Market leaders in diverse areas of business including engineering, abrasives, finance, general insurance, sanitaryware, cycles, sugar, farm inputs, fertilizers, plantations, bio-products and nutraceuticals, its 29 registered companies have manufacturing facilities spread across 14 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30,000 employees.

The Group has forged strong joint venture alliances with leading international companies like Roca, Cargill, DBS Bank, Mitsui Sumitomo and Groupe Chimique Tunisien and has consolidated its status as one of the fastest growing diversified business houses in India.

About DBS
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 2006, being approximately SGD18.7 billion (USD12.2 billion) and approximately SGD197.4 billion (USD129 billion). DBS is a leading bank in Hong Kong. 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.

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