Cholamandalam Investment and Finance Company Limited (CIFCL), part of the Murugappa Group, has issued a detailed clarification addressing certain blogs and posts published by an external agency that made allegations against the company, its associates, subsidiaries, and other Murugappa Group entities. The company categorically stated that the allegations are malicious, baseless, and driven by ulterior motives, and were issued with the intent of avoiding unnecessary market speculation.
In its statement, CIFCL reassured investors and stakeholders that the company's financial performance, asset quality, and liquidity position remain robust, as reflected in its audited financial statements for the half-year ended September 2025. The company confirmed that there has been no revision to its earlier guidance and that it continues to operate in line with its Board-approved business plan.
As of November 30, 2025, CIFCL reported strong liquidity with cash and bank balances of approximately ₹14,900 crore, while its asset-liability management across all time buckets remains positive. The capital adequacy ratio stood at 19.79%, with Tier I capital at 14.53%, well above the statutory thresholds. The company's credit ratings continue at AA+ from leading agencies including ICRA, India Ratings, and CARE.
The company's net worth increased to ₹26,783 crore as of November 30, 2025, marking a rise of over ₹3,000 crore compared to FY25 closing levels. This growth includes the conversion of ₹300 crore of compulsorily convertible debentures issued in FY24, with the remaining ₹1,700 crore expected to be converted over the next three quarters, further strengthening the balance sheet.
Responding to specific queries and allegations, CIFCL clarified that large cash collections are a natural outcome of its business model, which serves over 50 lakh customers, primarily small road transport operators and self-employed individuals across rural and semi-urban India. Cash collections received as EMIs are deposited into banks and are subject to robust internal controls, statutory audits, and full compliance with KYC and income tax regulations.
On related party transactions, the company stated that all such dealings are fully disclosed in accordance with applicable accounting standards and legal requirements. Transactions with group entities, including insurance premiums paid to Cholamandalam MS General Insurance Company Limited for borrower protection policies, are carried out to safeguard both borrowers and the company from unforeseen risks. Payments for manpower, IT, strategic services, and temporary working capital support are also executed in compliance with law wherever related parties are involved.
CIFCL further rejected claims that individuals benefit improperly from these transactions, clarifying that all payments to board members, key managerial personnel, and senior management personnel are made strictly as per law and are transparently disclosed to shareholders. The company also addressed questions on payments to rating agencies, stating that such costs are standard industry practice and directly linked to borrowing requirements.
Regarding corporate social responsibility spending, CIFCL clarified that CSR contributions are made through structured work contracts with implementing agencies to ensure proper monitoring and execution, in line with mandatory legal requirements.
Concluding its clarification, the company stated that distorted facts and selective interpretations were used by the agency to misrepresent standard industry practices. CIFCL reaffirmed that all its operations are conducted in full compliance with applicable laws and regulatory guidelines, emphasized its commitment to transparent communication with investors, and reserved the right to take appropriate action against entities that attempt to damage its reputation and integrity.