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Mahindra Finance disbursement climbs 75% YoY in Nov'22 
(12:29, 03 Dec 2022)

The company said that the growth in the disbursement was mainly aided by positive macro environment. The NBFC's year to date (YTD) disbursement stood at approximately ₹ 31,050 crore, registered a YoY growth of 99%.

Healthy disbursement trends have led to a strong gross asset book of approximately ₹ 76,300 crore, growing around 3.4% over September 2022. This has resulted in growth of approximately 17.5% compared to March 2022.

The collection efficiency (CE) was at 96% for November 2022 as compared to 94% recorded in the same period last year.

The NBFC said that the stage 2 assets as at November end experienced a sequential reduction compared to October 2022 and is estimated below 9%, while stage 3 assets remained stable at lower than 7% as at month end. The company expects further improvement in stage 2 and stage 3 assets during December 2022, it added.

Gross non-performing assets (GNPA) (as per income recognition, asset classification and provisioning norms) it is estimated to be higher than stage 3 asset by approximately ₹ 1,200 crore, reconfirming the management belief that no additional provisions may be required over and above the expected credit loss (ECL) provision for FY23, Mahindra Finance stated in the press release.

Mahindra Finance, part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 8.1 million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

The company's consolidated net profit declined 55.41% to ₹ 490.38 crore despite a 2.81% rise in sales to ₹ 3,010.95 crore in Q2 FY23 over Q2 FY22.

Shares of Mahindra & Mahindra Financial Services rallied 3.95% to end at ₹ 229 on the BSE.

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