KOCHI: Chemmannur Credits and Investments Ltd (CCIL), the non-banking finance arm of the Bobby Chemmanur-led Chemmannur International Group, is emerging as a steady performer in the group’s diverse portfolio, backed by branch expansion, improved profitability, and a rising asset base.
The Kerala-headquartered NBFC reported a net profit of Rs1.02 crore for the nine months ended December 2024, up from Rs80 lakh for FY24. Assets under management stood at Rs554.8 crore at the end of the period, while total assets grew to ₹679.5 crore from Rs635 crore in FY24.
Equity also saw a significant boost, rising from Rs89 crore to Rs111 crore, reflecting both internal accruals and fresh capital infusion by promoters.
Launched over a decade ago, the Bobby Chemmannur promoted CCIL began as a gold loan provider focused on Kerala and Tamil Nadu but has gradually expanded to Maharashtra, Karnataka and Andhra Pradesh.
It now operates 293 branches, with plans to reach 350 by the end of FY25. While 70% of the loan book is still concentrated in Kerala and Tamil Nadu, this is down from 80% in FY24, indicating gradual geographic diversification.
The company’s growth strategy has increased operating expenses – operating cost to average asset ratio stood at 10.4 per cent in 9MFY25 – but analysts expect costs to rationalise as the AUM per branch improves.
Net interest margins remain healthy, and credit costs low. The return on average assets was 0.20 per cent in the nine-month period.
Capital adequacy improves
CCIL’s capital adequacy has also improved following a Rs20 crore capital infusion in the second half of FY25, with Tier-1 capital adequacy rising to 17.3 per cent as of December 2024 and overall capital adequacy at 26.2 per cent.
While funding remains concentrated, with 85 per cent sourced from retail NCDs and subordinated debt – mostly from investors in Kerala and Tamil Nadu – the company has maintained a strong liquidity position.
It had Rs467 million in unencumbered cash and deposits as of February 2025, comfortably covering upcoming debt obligations of Rs376 million.
With its core gold loan business supported by robust risk management – including in-house vault surveillance, surprise audits, and insurance coverage – CCIL is positioning itself as a stable, retail-focused lender within the Bobby Chemmanur Group.
As other parts of the group explore opportunities in jewellery retail, hospitality, and lifestyle ventures, CCIL’s performance could serve as a foundation for broader financial services ambitions under the Chemmannur International brand.
