Arul Selvan, Cholamandalam Investment, expects a better Q3 in terms of disbursements compared to last year. He notes that October saw a good surge in disbursements due to festivals, while November saw a slight drop, but expects a better December due to year-end discounts. He also expects a better Q3 overall.
Regarding growth, Selvan expects disbursements to accelerate in Q4, with AUM growth targeted at around 25%. He notes that vehicle finance, loan against property, and home loans will continue to show growth, while SME and unsecured lending may slow down.
Selvan also addresses concerns about the rural market, stating that M&HCVs are still slow, but there is traction in used segments and rural passenger cars. He expects the company to reach its targeted growth.
On net interest margins (NIMs), Selvan expects only marginal improvements due to CRR cuts, and targets NIMs to remain at similar levels. He also reaffirms the company’s AUM growth guidance of 25% to 28% for the second half of the year, which may be achieved on the lower end of the target.