More Details on This News

Cholamandalam Investment and Finance Company Limited (CIFCL) held an investor call on December 23, 2025, to address allegations made by an agency on its website. The company categorically denied all charges, labeling them as malicious and baseless. CIFCL reassured investors about its robust financial health, asset quality, and liquidity position, citing audited financial statements for the half-year ended September 2025. The company confirmed no revision in its guidance and stated its commitment to delivering as per its board-approved business plan.

Key financial metrics highlighted include cash and bank balances of ₹14,900 crores as of November 30, 2025, a positive ALM across all time buckets, and a CAR of 19.79% with Tier 1 capital of 14.53%. The company's net worth stood at ₹26,783 crores as of November 30, 2025, an increase of over ₹3,000 crores from FY25 closing levels. CIFCL also clarified that ₹1,700 crores of CCDs are expected to be converted in the next three quarters, further strengthening its net worth.

The company addressed specific allegations regarding cash deposits, related party transactions (RPT), payments to rating agencies, and CSR contributions. CIFCL explained that cash collections, while decreasing to 15% from a previous high of 50%, are a necessity due to the nature of its customer base in rural and semi-urban areas. RPTs, including premiums paid to Chola MS General Insurance and services from Murugappa Management Services (MMS), were disclosed as being in the ordinary course of business and compliant with legal and accounting requirements. Payments to rating agencies were stated to be in line with industry practice, with total fees around ₹20 crores against borrowings of ₹1,74,000 crores in the last year. CSR contributions were confirmed as mandatory and managed through work contracts with NGOs and implementation agencies.

CIFCL stated its intention to take legal action against the agency for reputational damage. The company also provided an update on its Q3 performance, indicating a pickup in disbursements and expecting a decent quarter, potentially better than the first half, with improved asset quality.