M&M Finance at a 52-week high after August disbursements rise 75%

The Collection Efficiency (CE) during the month of August remained stable at 96 percent, compared to 97 percent in August 2021. The figure has oscillated between the 95-97 percent mark over the last four months.

M&M Finance also mentioned that its Stage 2 assets or overdue assets in excess of 60 days declined from last month while its Gross Non-Performing Assets (GNPA) or Stage 3 assets were stable in August.

"The company expects an improvement in Stage 2 and Stage 3 assets during September 2022," it said in its exchange filing.

In an interview with CNBC-TV18 last month, Vice Chairman & MD Ramesh Iyer said that disbursements had started to grow, leading to AUM growth. "We are at close to 26 percent and it's only now that we have started seeing good growth of disbursement leading to AUM growth. As we start consuming this capital and the return on assets (RoA) coming back, you would see that happen in the next couple."

Shares of M&M Financial Services are up 3.3 percent at Rs 215.85 in early trading. The stock is the top F&O gainer and is also trading at a 52-week high. The stock has risen 42 percent this year so far.