homeearnings NewsM&M Financial sees 20 22% AUM growth, says 50% of book will come from affordable housing
M&M Financial sees 20-22% AUM growth, says 50% of book will come from affordable housing
In a post-earnings chat with CNBC-TV18, Ramesh Iyer pointed out that in the next three to four quarters, the share of affordable lending in their portfolio is expected to surpass that of rural lending.
Mahindra & Mahindra Financial Services' (MMFSL) asset under management (AUM) will grow at over 20-22% by March, Vice Chairman and Managing Director, Ramesh Iyer told CNBC-TV18 in a post-earnings chat. He also discussed about the company's growing focus on affordable housing.
"In the next year or so, you will see close to 50% of the book come from affordable housing," he said, adding that the affordable segment will surpass the share of rural lending in the company's portfolio.
Rural lending has been a dominant force in their portfolio due to asset maturation. While this has translated into disbursement growth, it has somewhat masked the AUM. The company intends to continue its presence in the rural high-end market.
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Iyer said there were delays in the tractor segment's collection due to delayed monsoons. but things have stabilised now.
Net interest margins (NIMs) are expected to inch up to 7% by the end of March.
The non-banking financial services (NBFC) firm reported a 47.5% year-on-year (YoY) decrease in its net profit, at ₹235.2 crore for the second quarter ending on September 30. M&M Fin's revenue from operations for the quarter increased 24.2% to ₹3,211.9 crore.
Net interest margin for the quarter at 6.5% was impacted by higher borrowing rates coupled with a change in portfolio mix in favour of better credit quality customers, the company said.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
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