New Delhi, Jul 31 (PTI) NBFC firm Cholamandalam Investment and Finance Company Ltd on Tuesday reported a 28 per cent rise in standalone net profit at Rs 726 crore in the April-June quarter.

The Chennai-based lender had posted a net profit of Rs 566 crore in the year-ago period.

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The total income in the first quarter of the current fiscal rose to Rs 4,134 crore against Rs 2,771 crore, Chola said in a regulatory filing.

The lender's interest income also increased to Rs 3,849 crore from Rs 2,612 crore in the same quarter a year ago.

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On the asset quality side, the bank witnessed improvement with the gross non-performing assets (NPAs) easing to 4.30 per cent of the gross advances by June 2023 from 6.31 per cent a year ago.

The net NPA too declined to 2.82 per cent against 4.43 per cent in the year-ago period.

Provision coverage ratio of the bank improved to 35.55 per cent as of June 2023 as against 31.16 per cent at the end of first quarter of last fiscal.

The board of the company approved issuance of equity shares or convertible securities by way of qualified institutions placement to eligible qualified institutional buyers up to an amount not exceeding Rs 4,000 crore in one or more tranches.

Besides, the board has cleared the proposal for issue of secured or unsecured redeemable non-convertible debentures aggregating to Rs 38,000 crore in one or more tranches on private placement basis.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)