Bad loans in rural markets will fall if farmers start getting timely payments for their produce, according to Ramesh Iyer, managing director of Mahindra and Mahindra Financial Services. Sentiment in the rural market is positive, he said.
From 11.6 percent, our gross non performing asset ratio has come down to 8.5 percent; and we do see that if infrastructure and farm cash flow hold up, the trend of reduction will continue for the next couple of years.Ramesh Iyer, MD, M&M Financial Services
The company’s profit rose 81 percent in the March quarter at Rs 424 crore, meeting analyst expectations. Income from operations for the Mahindra Group company grew 12.8 percent to Rs 2,060 crore. Provisions fell marginally to Rs 157 crore against Rs 199 crore in the quarter-ended December.
M&M Financial Services to BloombergQuint:
- Entry of new original equipment manufacturers giving us more growth opportunities.
- See opportunities to pass on borrowing cost hikes to consumers.
- Growth outlook for Mahindra Rural Housing Finance still very buoyant.
- Had one-time provision of about Rs 20 crore coming from a long term incentive plan for insurance broking business.