Cholamandalam: Buy; PT Rs252 �� :: UBS India Mid-Cap Premier League - Season 1

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Cholamandalam: Buy; PT Rs252
�� The company plans to start gold financing business as a pilot in FY12.
�� The company made a NI spread of 6% in FY11 and estimates it to be 5.5%
for FY12.
�� Chola also plans to increase its branches to 345 by FY12.
�� The company will run down its entire personal loan book by September this
year and will also not book any securitization income from this year
onwards.
�� The company will gain an AFC (Asset financing company) status in this
year, potentially aiding lower borrowing costs.

�� Chola will now have no Priority sector loans (PSL) benefit on any fresh
borrowing, thus the cost of lending for the company will increase by 50-
60bps.