Chola Investment & Fin's President & CFO, Arul Selvan, says that the asset quality for Q1 will deteriorate slightly as collection efforts were high due to end-of-year activities in Q4. However, Chola Investment AUM has seen healthy growth across all verticals, especially vehicle finance and SME business. The cost of funds is expected to moderate going forward, and the new rate book for vehicle finance will take at least three to four quarters to reflect the new rates. Despite provisions tripling, the asset quality is performing much better than pre-COVID on a quarter-on-quarter basis.
