homebusiness Newscompanies NewsM&M Finance disburses Rs 4,500 crore in September at 11% YoY growth

M&M Finance disburses Rs 4,500 crore in September at 11% YoY growth

Mahindra & Mahindra Finance Service Ltd's disbursements in the second quarter of the current fiscal came in at Rs 13,300 crore, translating to a 12.6 per cent YoY growth.

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By Jomy Jos Pullokaran  Oct 3, 2023 8:53:21 PM IST (Updated)

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M&M Finance disburses Rs 4,500 crore in September at 11% YoY growth
Mahindra & Mahindra Finance Service Ltd disbursed Rs 4,500 crore in September, recording an 11 per cent year-on-year (YoY) growth, the Mahindra group non-banking financial firm informed exchanges on Tuesday, October 3. The disbursements in the second quarter of the current fiscal came in at Rs 13,300 crore, translating to a 12.6 per cent YoY growth.

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In the first half of FY24, the rural non-banking firm disbursed Rs 25,500 crore, posting a growth of 20 percent YoY. Business assets stood at Rs 93,600 crore and the company attributed it to healthy disbursement trends in the second quarter and pre-festival dealer advances.
"Healthy disbursement trends during Q2FY2024 together with pre-festival dealer advance have led to Business Assets at approximately Rs. 93,600 crores, growth of approximately 13 percent over March 2023 and approximately 8 percent over June 2023," the filing showed.
M&M Financial Services reported a marginal improvement in the collection efficiency at 97 per cent over 96 per cent in August, but below the 98 per cent collection efficiency it had recorded in September 2022.
The company's Stage-3 assets, which represent accounts with potential credit issues, were estimated at 4.4 percent compared to 4.3 percent as of June 2023.
Additionally, Stage-2 assets, which are at a higher risk of becoming non-performing, were estimated at 5.8 percent, showing an improvement from 6.4 percent as of June 2023.
Mahindra & Mahindra Financial Services maintained a comfortable liquidity position on its balance sheet, boasting a liquidity chest sufficient for over 2.5 months.
Shares of Mahindra & Mahindra Financial Services Ltd ended at Rs 301.00, down by Rs 0.30, or 0.100 percent on the BSE.

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