Cholamandalam Investment and Finance Company Limited (CIFCL) has addressed recent allegations made against it, assuring investors of its strong financial health. The company maintains a robust liquidity position with ₹14,900 crores in cash and bank balances as of November 30, 2025. CIFCL reaffirms its commitment to delivering on its approved business plan and states that allegations are malicious and baseless. The company’s AA+ rating remains unchanged.
Response to Allegations
Cholamandalam Investment and Finance Company Limited (CIFCL) has responded to recent allegations circulating online, asserting that these claims are malicious and without merit. The company has undertaken a review of the allegations and provided a summary response to reassure investors and stakeholders.
Financial Health and Liquidity
CIFCL emphasizes the strength of its financial performance, asset quality, and liquidity position. As of November 30, 2025, the company’s cash and bank balances stood at ₹14,900 crores, with a positive ALM across all time buckets. The Company also stated that there is no change in the guidance it had provided in the past and will continue to operate within its Board approved business plan.
Capital Adequacy and Ratings
The company’s Capital Adequacy Ratio (CAR) for the period ending November 30, 2025, was reported at 19.79%, with Tier I capital at 14.53%, exceeding the statutory requirements. CIFCL’s rating remains at AA+ from ICRA, India Ratings, and CARE.
Clarification on Business Practices
CIFCL addressed queries regarding cash deposits, explaining that it caters to small road transport operators and self-employed individuals across India, who often transact in cash. The company has robust internal systems and follows all KYC and income tax compliance procedures. Furthermore, CIFCL assures that all related party transactions are fully disclosed in its financial statements and adhere to legal and accounting standards.
Rejection of Benefit Claims
CIFCL categorically denies allegations that certain individuals are benefiting inappropriately from company transactions. All payments to Board members, Key Management Personnel (KMP), and Senior Management Personnel (SMP) are compliant with applicable laws and fully disclosed to shareholders.
Ratings and CSR
The company clarified that payments to rating agencies are a standard industry practice necessary for borrowings. Higher borrowing amounts necessitate more ratings and result in higher associated costs. CSR contributions are allocated to NGOs and implementation agencies via work contracts to monitor progress, as required by law.
Source: BSE
