M&M Financial Q1 PAT up 45% YoY, NII up 15%

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Mahindra & Mahindra Financial Services reported a 45 per cent year-on-year increase in net profit in the June quarter, to ₹513 crore, and the net interest income was up 15 per cent to ₹1,932 crore.

The net interest income margin was 20 basis points lower at 6.6 per cent.

The company ended the quarter with a gross loan book of ₹1.1 lakh crore, up 23 per cent on year.

Loan disbursements rose a modest 5 per cent to ₹12,741 crore.

The collection efficiency was stable at 94 per cent. The company said it had a continued focus on underwriting standards and by addressing early bucket delinquency, the asset quality remained stable. Stage-2 and Stage-3 assets were below 10 per cent, Stage 3 assets at 3.6 per cent, up from 3.4 per cent at the end of March.

The NBFC’s new product portfolios such as SME lending, loan against property and leasing are growing, the company said. It has also partnered with digital MSME lender Lendingkart under a co-lending arrangement to offer business loans to MSMEs. Overall, the SME portfolio disbursement grew 68 per cent in Q1FY25.

It plans to grow the non-vehicle finance segment to 15 per cent of the AUM over the medium term.

During the quarter, the company obtained a corporate agency license from the insurance regulator IRDAI, to sell life and general insurance policies from various insurers. It has so far onboarded six Insurance companies and more such collaborations are expected in future.

The financier ended Q1FY25 with a capital adequacy ratio of 18.5 per cent and a comfortable liquidity chest of ₹8,216 crore.