Mahindra Finance disbursement surges 67% YoY in Dec'22

Mahindra & Mahindra Financial Services said that it has recorded a disbursement of approximately Rs 4,650 crore in December 2022, delivering a 67% year on year (YoY) growth.

The company said that the growth in the disbursement was aided by positive macro environment. The Q3 disbursements stood at approximately Rs 14,450 crore, recording a growth of 80% YoY. The year to date (YTD) disbursements was approximately Rs 35,750 crore, registering a YoY growth of 95%.

Healthy disbursement trends have led to business assets at approximately Rs 77,000 crore, growth of approximately 4.3% over September 2022. This has resulted in growth of around 18.5% vs March 2022.

The collection efficiency (CE) stood at 98% for December 2022. The current quarter's CE was similar to that of last year at 95%.

The NBFC said that the Stage-3 and Stage-2 assets have seen sequential improvement in the current month and quarter. Stage 3 assets are expected at approximately 6.2% and Stage 2 assets at approximately 8.5% as at December end.

Gross Non-Performing Assets (GNPA) (as per income recognition, asset classification and provisioning norms) is estimated to be higher than Stage 3 asset by approximately Rs 1,300 crore, reconfirming the management belief that no additional provisions may be required over and above the expected credit loss (ECL) provision for FY23, Mahindra Finance stated in the press release.

The NBFC continued to maintain comfortable liquidity chest of about 4 months' requirement, said the company.

Mahindra Finance, part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 8.1 million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

The company's consolidated net profit declined 55.41% to Rs 490.38 crore despite a 2.81% rise in sales to Rs 3,010.95 crore in Q2 FY23 over Q2 FY22.

Shares of Mahindra & Mahindra Financial Services declined 1.87% to Rs 236.50 on the BSE.

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