homefinance NewsDon't expect decline in net interest margin to hit return on assets: M&M Finance's Ramesh Iyer
Don't expect decline in net interest margin to hit return on assets: M&M Finance's Ramesh Iyer
Mahindra and Mahindra Financial Services Ltd (MMFS) on Friday recorded a standalone profit after tax (PAT) of Rs 353 crore for the April to June quarter (Q1FY24).
Mahindra and Mahindra Financial Services (Mahindra Finance) on Friday posted 58 percent rise in net profit for the first quarter of 2023-24 (Q1FY24) year-on-year (YoY), but dropped 48.5 percent quarter-on-quarter (QoQ). The numbers are disappointing, but Ramesh Iyer, vice-chairman and managing director at the firm says that he is not expecting decline in net interest margin (NIM) to impact return on assets (RoA).
The NIM stood at 6.8 percent for the quarter under review. During the last quarter, the net interest margin was at 7.4 percent or Rs 1,723 crore.
"The extra provisions will strengthen balance sheet. Second half of the year is the best for rural business. We are seeing write-offs every quarter now versus once in six months earlier," Iyer told CNBC-TV18.
He added that housing finance will be different from the past in next three years and M&M will go slowly in deep rural market for housing finance.
Meanwhile, the Mumbai-headquartered non-banking financial company's (NBFC) total income came in at Rs 3,125 crore during the quarter, a growth of 25 percent on-year aided by growth in asset book. The Net Interest Income (NII) was at Rs 1,675 crore, increased by 7 percent YOY, impacted by a change in portfolio mix and increased interest costs. A CNBC-TV18 poll of analysts expected NII to come in at Rs 1,687.4 crore.
During the first quarter of FY24, the company said it maintained its leadership position in tractor and Mahindra auto vehicle segments. The disbursement growth was broad-based across vehicle segments.
“During the first quarter of FY24, the Company maintained its leadership position in Tractor and Mahindra Auto vehicle segments. The disbursement growth was broad-based across vehicle segments," said the company.
"Going forward, the company shall focus on maintaining the market leadership in core segments, while accelerating growth in pre-owned vehicle segment, SME, Leasing and personal loans," said the non-banking financial company in the exchange filing.
(Edited by : Anshul)
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