Mahindra Finance spending up 75% y-o-y on Nov 22 | News Bharat

Mahindra & Mahindra Financial Services said it will spend around Rs 4,500 crore in November 2022, up 75% year-on-year.

The company said the increase in spending was largely due to a positive macro environment. NBFC’s year-to-date (YTD) disbursements stood at approximately Rs 3,105 crore, up 99% year-on-year.

Healthy spending trends resulted in a strong total asset book of around Rs 7,630 crore, up around 3.4% from September 2022. This results in an increase of approximately 17.5% compared to March 2022.

The collection efficiency (CE) in November 2022 was 96%, compared to 94% in the same period last year.

The NBFC said that as of end-November, the sequential decline in Phase 2 assets compared to October 2022 was estimated at less than 9%, while Phase 3 assets stabilized below 7% by the end of the month. It added that the company expects to make further improvements to the Phase 2 and Phase 3 assets during December 2022.

Gross Non-Performing Assets (GNPA) (based on revenue recognition, asset classification and provisioning norms) is estimated to be around Rs 1,200 crore higher than Phase 3 assets, reconfirming management’s view that additional provisions may not be required Mahindra Finance said in a press release, FY23 expected credit loss (ECL) provision.

Mahindra Finance, part of the Mahindra Group, is one of India’s leading non-bank financial companies. Focusing on rural and semi-urban areas, the company has more than 8.1 million clients and over $11 billion in assets under management. The company is a leading automotive and tractor financial institution, providing loans to small and medium enterprises and also offering term deposits.

The company’s consolidated net profit fell by 55.41% to Rs 4,903.8 crore despite a 2.81% increase in sales in Q2FY23 from Q2FY22 to Rs 3,010.95 crore.

Shares of Mahindra & Mahindra Financial Services rose 3.95 percent to close at Rs 229 on the BSE.

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(This story was not edited by Business Standard staff and was automatically generated from a syndicate feed.)

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