Cholamandalam plans to foray into affordable housing finance

Cholamandalam plans to foray into affordable housing finance Chennai: Cholamandalam Investment and Finance Company, a part of the USD 4.4 billion Murugappa Group company, has plans to foray into the affordable housing finance a, a top official has said.

The company is also planning to enter into the affordable housing finance as a line extension of home equity, Cholamandalam Investment and Finance Company Chairman M B N Rao said addressing the company's 34th AGM.

Noting that company entered the tractor financing as an extension of vehicle finance, he said it achieved a 3.5 per cent market share in the first year of its operations.

On the vehicle finance division, he said the overall industry rate of growth of commercial vehicle was lower than financial year 2010-11, largely due to the drop in the growth of heavy commercial vehicles.

"Medium and heavy commercial vehicle registered a growth of eight per cent, while light commercial vehicle grew by 27.36 per cent", he said, adding the company's overall commercial vehicle disbursement grew by 63 per cent over the previous year.

The commercial vehicle market share increased this financial year from eight per cent to 10 per cent. Growth in the new commercial vehicle disbursements in terms of units was 49 per cent as against the industry's growth of 18 per cent.

On the home equity business, he said the division closed the year with an asset portfolio of Rs 3,083 crore, constituting 23 per cent of the net managed assets.

PTI