Cholamandalam Investment and Finance Company Limited (CIFCL) has addressed recent allegations, asserting they are malicious and baseless. The company reaffirms its strong financial health, with ₹14,900 crores in cash and bank balances as of November 30, 2025. CIFCL maintains an overall CAR of 19.79% and reassures investors of its continued performance and asset quality.
Response to Allegations
Cholamandalam Investment and Finance Company Limited (CIFCL) has responded to allegations made against the company and its associates, deeming them malicious and baseless with ulterior motives.
Financial Health and Liquidity
CIFCL emphasizes its robust financial health, with a strong liquidity position. As of November 30, 2025, the company holds ₹14,900 crores in cash and bank balances. The company’s asset quality remains solid, as reflected in its audited financial statements for the half-year ending September 2025 (Q2 FY26).
Capital Adequacy and Ratings
The company’s Capital Adequacy Ratio (CAR) stood at 19.79% as of November 30, 2025, with Tier I capital at 14.53%, exceeding the statutory requirements. CIFCL’s ratings remain at AA+ from ICRA, India Ratings, and CARE.
Clarifications on Queries
CIFCL addressed queries relating to financial practices and related party transactions:
- The company clarified that large cash deposits are due to serving a large number of small road transport operators and self-employed individuals across 1,700 branches. These cash collections are subject to internal and external scrutiny and comply with KYC and income tax regulations.
- Related party transactions are fully disclosed and compliant with legal requirements. For instance, premiums collected from borrowers for accident and hospitalization policies are paid to Cholamandalam MS General Insurance Company Limited (CMSGICL), a fellow subsidiary.
Rejection of Claims
CIFCL categorically rejects claims of individuals benefitting improperly from company transactions, stating that all payments to Board members, KMP, and SMP comply with the law and have been disclosed to shareholders.
Queries regarding payments to rating agencies are addressed by stating that such payments are standard industry practice for all borrowings.
CSR contributions are made to NGOs/implementation agencies in the form of work contracts for monitoring implementation progress.
Source: BSE