Cholamandalam Investment has reported a slight deterioration in asset quality for Q2 FY25:
- Stage 3 levels (representing 90+ day dues) increased to 2.83% as of September 2024, up from 2.62% in June 2024.
- Gross Non-Performing Assets (GNPA) as per RBI norms rose to 3.78% as of September 2024, compared to 3.62% in June 2024.
- Net Non-Performing Assets (NNPA) also saw an increase, rising to 2.48% as of September 2024, up from 2.37% in June 2024.
Despite the rise in NPA levels, the company’s NNPA remains well below the 6% threshold prescribed by the RBI for triggering the Prompt Corrective Action (PCA) framework.
This rise in NPA ratios indicates a moderate increase in overdue loans, although it is still within manageable levels as per regulatory norms.
