Cholamandalam Investment and Finance Company

Cholamandalam Investment and Finance Company Limited, commonly known as Chola, is a Chennai-based Indian non-banking financial company and investment-service provider associated with the Murugappa Group. The company was incorporated in 1978 and has developed a lending-focused business serving retail customers, entrepreneurs, and commercial borrowers in India. Its principal activities include vehicle finance, housing finance, loans for small and medium-sized enterprises, and other forms of secured and retail credit. The company’s history includes a major strategic partnership with DBS Bank. In 2005, DBS acquired a 37.5% interest in Cholamandalam Investment and Finance Company, while the Murugappa Group reduced its holding to a corresponding level. During the joint-venture period, the business operated under the name Cholamandalam DBS Finance. The partnership ended in 2010, when DBS sold its entire interest back to the Murugappa Group and withdrew from the venture. The transaction returned the company to Murugappa Group control and was followed by the restoration of the Cholamandalam identity. Chola operates within India’s non-bank financial company sector, which provides credit outside the traditional commercial-banking model. Its lending portfolio is associated particularly with mobility and asset finance, including financing for vehicles, as well as housing and business credit. This gives the company exposure to household borrowing, transport and commercial activity, and the financing requirements of smaller enterprises. Its branch-based model is designed to reach customers beyond the largest metropolitan centers. In January 2020, the company raised ₹400 crore through an issue of 10-year, rupee-denominated masala bonds to the United Kingdom’s CDC Group. The transaction provided long-term funding and illustrated the company’s use of capital-market and institutional-investor channels in addition to ordinary lending operations. Reference material describes the company as having a nationwide Indian network. As of 2026, it reported 1,820 branches across 26 states and seven Union Territories, serving 4.47 million customers, with a workforce of more than 71,000 employees and assets under management exceeding ₹2.54 lakh crore. These figures are time-specific and should not be treated as continuously current without an updated company filing. Chola’s public identity therefore combines the Murugappa Group’s long-standing corporate affiliation with a broad retail and commercial finance platform focused on Indian borrowers.

Cholamandalam Investment and Finance Company Limited was incorporated in 1978 under the Murugappa Group. It operates as an Indian non-banking financial company, a category of financial institution that provides credit and related services without operating as a conventional commercial bank. From its Chennai base, the company developed a lending platform serving vehicle purchasers, households, small and medium-sized enterprises, and other borrowers. A significant change in ownership and identity took place in 2005, when DBS Bank acquired a 37.5% stake in the company. The Murugappa Group reduced its holding to 37.5%, creating a strategic banking partnership. During this period, the company was renamed Cholamandalam DBS Finance. The arrangement connected the established Indian financial-services business with DBS Bank, while retaining the Cholamandalam association in the corporate name. The partnership was subsequently unwound. In 2010, DBS Bank sold its entire stake back to the Murugappa Group and exited the joint venture. This restored Murugappa Group control and marked the end of the DBS-branded phase of the company’s history. The business continued under the Cholamandalam identity and remained focused on lending and investment-related financial services in India. The company’s operating model has centered on a diversified lending portfolio. Vehicle finance is an important activity, covering credit linked to mobility and commercial transport needs. The company also offers housing finance, loans for small and medium-sized businesses, personal loans, and other financial products. These activities place it within India’s broader non-bank lending sector, where branch networks and specialized underwriting allow finance companies to serve borrowers with varied asset and working-capital requirements. In January 2020, Cholamandalam raised ₹400 crore through 10-year subordinated rupee-denominated masala bonds issued to the United Kingdom’s CDC Group. The transaction was a funding decision rather than a change to the company’s customer-facing product range. It demonstrated the use of institutional and capital-market funding to support the balance sheet of a large non-bank lender. Reference material reports that, as of 2026, the company had 1,820 branches in 26 Indian states and seven Union Territories, served 4.47 million customers, employed more than 71,000 people, and managed assets exceeding ₹2.54 lakh crore. These operational figures are explicitly time-bound. The available reference material does not provide a complete chronology of earlier product launches, detailed financial results, branch expansion dates, or all historical directors. Chola’s documented development is therefore best understood through three broad phases: its establishment within the Murugappa Group, the 2005–2010 DBS partnership, and its subsequent expansion as a nationwide Indian non-banking finance platform.

1. 2026Reported nationwide operating scale

   Reference material reported 1,820 branches across 26 states and seven Union Territories, 4.47 million customers, more than 71,000 employees, and assets under management above ₹2.54 lakh crore.

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2. 2020Masala bond funding

   The company raised ₹400 crore through 10-year subordinated rupee-denominated masala bonds issued to the United Kingdom’s CDC Group.

   Source
3. 2010DBS exits the joint venture

   DBS Bank sold its full interest back to the Murugappa Group and ended its participation in the company.

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4. 2005DBS Bank acquires a minority stake

   DBS Bank acquired 37.5% of the company, and the Murugappa Group reduced its holding to 37.5%. The company was later renamed Cholamandalam DBS Finance.

   Source
5. 1978Company incorporated

   Cholamandalam Investment and Finance Company was incorporated under the Murugappa Group in India.

   Source

A nationwide Indian non-banking finance platform focused on vehicle, housing, retail, and small-business credit.

• Vehicle financeAsset finance

  Chola’s vehicle-finance business provides credit connected with the acquisition and use of vehicles. It is a core part of the company’s non-bank lending profile and supports both individual and commercial mobility needs. The available reference material does not specify the complete range of vehicle categories, underwriting terms, or product-level launch dates.

• Housing financeRetail lending

  Housing finance is one of the company’s principal retail lending activities. It provides borrowing for housing-related purposes within the company’s broader Indian credit platform. Detailed information on loan tenors, customer eligibility, geographic segmentation, and product variants is not specified in the supplied reference material.

• SME loansBusiness lending

  The company lends to small and medium-sized enterprises, addressing financing requirements associated with business operations and asset acquisition. SME lending complements Chola’s vehicle and housing activities by extending its customer base beyond individual retail borrowers. The available sources do not provide a detailed breakdown of loan purposes or portfolio size.

• Personal loansConsumer finance

  Personal loans are identified as part of Chola’s wider financial-services offering. They sit alongside the company’s secured and asset-linked lending products and broaden its retail-finance proposition. Specific product structures, rates, eligibility rules, and launch dates are not stated in the supplied sources.

• 2020Long-term masala bond issuanceStrategy

  The company sought long-term institutional funding for its non-bank finance operations.

  What changed. Chola issued 10-year subordinated rupee-denominated masala bonds to the United Kingdom’s CDC Group.

  Aftermath. The transaction added long-term institutional funding to the company’s financing sources.

  Bond proceeds. ₹400 crore raised (January 2020)

  Source
• 2010Reacquisition of DBS stakeM&A

  DBS Bank decided to leave the Cholamandalam finance joint venture.

  What changed. DBS sold its entire stake back to the Murugappa Group.

  Aftermath. The Murugappa Group regained full ownership of the stake previously held by DBS, ending the joint-venture phase.

  Source
• 2005Strategic investment by DBS BankM&A

  DBS Bank acquired a 37.5% interest in Cholamandalam Investment and Finance Company as the Murugappa Group reduced its stake to 37.5%.

  What changed. The company entered a joint-venture structure with DBS and adopted the name Cholamandalam DBS Finance.

  Aftermath. The partnership lasted until 2010, when DBS sold its interest back to the Murugappa Group.

  Source

• 2020Cholamandalam raises funds through masala bonds

  The company issued 10-year rupee-denominated subordinated masala bonds to the United Kingdom’s CDC Group.

  Other
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• 2010DBS exits the Cholamandalam finance joint venture

  DBS Bank sold its entire interest back to the Murugappa Group and ended its participation in the joint venture.

  M&ALeadership change
  Source
• 2005DBS Bank takes a stake in Cholamandalam Investment and Finance Company

  DBS Bank acquired a 37.5% interest in the company, while the Murugappa Group reduced its holding to 37.5%. The business was subsequently renamed Cholamandalam DBS Finance.

  M&AOther
  Source

1. Cholamandalam Investment and Finance Company