The company’s assets under management increased 19% year over year to Rs 1.15 lakh crore, while disbursements increased 7% for the quarter to Rs 16,467 crore.
Mahindra & Mahindra Financial Services Limited reported a 63% year-over-year increase in net profit for the quarter ended December at Rs 899 crore, thanks to a dramatic decline in provisions and a robust expansion in the loan book. Financial instrument impairment fell 97% year over year to Rs 9.14 crore.
The non-banking financier adjusted the projected credit loss model for trade advance portfolios and small and medium-sized businesses during the quarter. In contrast to Rs 3,401 crore at the end of March 2024, it maintained provision for an anticipated credit loss of Rs 3,496 crore at the end of December 2024.
According to the RBI, non-banking financial firms must establish an impairment reserve to cover any deficit in impairment allowances.
The company’s assets under management increased 19% year over year to Rs 1.15 lakh crore, while disbursements increased 7% for the quarter to Rs 16,467 crore.
The non-bank lender’s stage 3 assets, which were at 3.9% at the end of December compared to 3.83% a quarter earlier, showed a decline in asset quality. Additionally, net stage 3 assets increased to 2.0% from 1.59% a quarter earlier. Sequentially, the overall collection efficiency stayed constant at 95%.
With a liquidity chest of over Rs 9,322 crore, the business maintained a sound liquidity position on its balance sheet. The company’s total revenue increased by 20%yearlyr to 4,144 crore.
