Availability of funds is not a serious issue for Mahindra & Mahindra Financial Service, said Ramesh Iyer, vice chairman and managing director of the company, adding commercial papers (CPs) are at 7-8% of borrowings.
The third quarter of FY19 saw the highest growth in assets under management (AUM) for Mahindra & Mahindra Financial Services Ltd (MMFSL) driven by strong disbursement growth.
Sharing his view and outlook going forward, Iyer said, “The availability of funds has not been a very serious issue as we saw possibly around Q3 while we had to put in extra efforts to make sure that sufficient supply was available for growth."
In terms of borrowings, he said, “As far as commercial papers (CPs) are concerned, we are at about 7-8 percent … as far as other sources are concerned, we have been able to raise money from the banking system. We have been able to raise the retail deposits, we have securitised a small percentage of our portfolio. We normally stay around 10 percent and we are below that level. I would think that the ability to raise funds for good non-banking financial companies (NBFCs) is definitely there. I don’t see that as a severe problem from an availability perspective.”
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