Cholamandalam DBS First Quarter Result Shows Growth of 90 per cent in Revenue

Chennai, 30 July, 2008: Cholamandalam DBS finance limited posted an impressive growth in revenue of 90 per cent to Rs.319 crores during the quarter ended 31st June 2008. This was supported by a strong growth in retail loans which grew by 66 per cent to 1650 crores compared to the corresponding quarter of the previous year. The profit dropped to Rs.5.26 crores compared to Rs.13.2 crores in the back drop of challenging circumstances prevailing in the financial market. The drop in profit is mainly on account of worsening market scenario of unsecured lending business and the resultant stress in the portfolio in certain select markets.

The company continued its growth strategy through increased disbursements in all the segments of business. The Vehicle Finance business grew by 43 per cent and Personal Loan business by 45 per cent during the quarter. Last year the company launched home equity business and two wheeler lending business which also showed robust growth during the quarter.

Cholamandalam DBS along with its subsidiaries is present more than 280 branches across the country having diversified product offerings like Vehicle Finance, Personal Loans, Home Equity, Two wheeler and Business Finance. During the quarter the company expanded its reach in used vehicle business and increased the penetration of Home Equity business through additional branch infrastructure. Through its subsidiaries the company is also offering Wealth Management and broking services during the quarter increased customer acquisition momentum through on line web trading portal.

Speaking on the occasion, Mr. Atul Pande, Managing Director, Cholamandalam DBS said,"Market conditions in our industry have been challenging in the last few months. In spite of that, most of our businesses have demonstrated growth. The increased provisioning is largely due to prudent norms we have taken in our unsecured books, by looking at the inflationary economic environment in the country. Our other businesses, such as, Vehicle Finance, Corporate Finance and Home Equity Loans continue to deliver robust growth & profitability. Wealth Management business is also continuing to drive up their revenues in tough market conditions. We stand committed to our vision of creating an integrated retail financial service platform in India."

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 Rs.9582 Crore (USD 2.4 billion) Murugappa Group is India’s leading business conglomerate. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 29 limited companies have manufacturing facilities spread across 13 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30 ,000 employees. The Group which has forged strong joint venture alliances with leading international companies like DBS Bank, Mitsui Sumitomo, Cargill, China Engineering & Expoloration Bureau and Groupe Chimique Tunisien, 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 2007, being SGD 20.5 billion (USD14.2 billion) and SGD 233.6 billion (USD162.0 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.

For further information, please contact:
Mr. Atul Pande
Managing Director
Cholamandalam DBS Finance Limited
Tel: 044-25307172

top