homefinance NewsVehicle availability could be hit; slowdown in disbursals likely going ahead: M&M Financial Services
Vehicle availability could be hit; slowdown in disbursals likely going ahead: M&M Financial Services
In an interview with CNBC-TV18, Ramesh Iyer, VC & MD, Mahindra & Mahindra Financial Services, said that there could be a slowdown in disbursals, going ahead. Further, he shared that availability of vehicles could be impacted as well.
In an interview with CNBC-TV18, Ramesh Iyer, VC and MD, Mahindra & Mahindra Financial Services, said that there could be a slowdown in disbursals, going ahead. He highlighted that disbursals could be at 25 percent on a year-on-year (YoY) basis for the next 3-6 months. Further, he shared that availability of vehicles could be impacted as well,
Iyer said, “As it is, the availability of vehicle was an issue and with all this development, yes, the fear is that the availability could further be impacted and that would have a direct impact on disbursements.”
Iyer explained that recovery side problem is not there, however, AUM (assets under management) growth could take a little longer.
He said, "Unfortunately, with disbursements likely to go slow, we don't see the problem on the recovery side, we are seeing corrections happening there and therefore the AUM growth could take a little longer - that is until disbursement really continues to stay at 25- 30 percent kind of levels at least for the next three to six months."
On interest rates, he said that it could increase by 40-50 basis points in the next few months.
Iyer said, "Clearly in the next two to three quarters, we would see the interest rates move up at least by 40-50 basis points. My own view is that it will get passed on to the consumer. It's been too long that the interest rates have been low."
Iyer also said that the company is eyeing inorganic growth opportunities.
He said, "We will continue to explore opportunities. At this stage, we don't see anything immediately. But any of this space, whether it is small-ticket loans, whether it is in the leasing space, or for that matter in the SME space, if there are such opportunities available, I think M&M Finance will be very, very active in that space."
Watch the video for the full interview.
First Published: Mar 7, 2022 12:04 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: Phase 5 voting concludes with over 57% voter turnout, experts weigh in on key battles
May 20, 2024 11:07 PM
BJP holds meeting in Delhi as polling underway for 5th phase
May 20, 2024 4:21 PM
UP Police arrests man after viral videos shows him voting multiple times
May 20, 2024 2:18 PM