Worst In Terms Of Bad Loans Is Over, Says M&M Financial Services
A customer holds up a Indian two hundred rupee banknote. (Photographer: Dhiraj Singh/Bloomberg)

Worst In Terms Of Bad Loans Is Over, Says M&M Financial Services

Mahindra & Mahindra Financial Services Ltd. said the worst in terms of non-performing assets is over for the company.

“The NPAs have almost remained at the levels registered during the three months ended March,” Managing Director Ramesh Iyer told BloombergQuint in an interaction. “During the first quarter, NPAs jumped about 2-3 percent. If that is being well controlled, I think we have every reason to believe that we are on the correction path and that the worst is over for us.”

Key Earnings Highlights

(First Quarter, Year-on-Year)

  • NII was up 45 percent to Rs 1,077 crore.
  • Net profit rose 33.6 percent to Rs 269 crore.
  • Provisions stood at Rs 294 crore against Rs 127 crore.
  • Assets under management rose 21 percent to Rs 58,711 crore.
  • Disbursements grew 35 percent year-on-year.
  • Gross non-performing assets stood at 9.4 percent compared with 14.5 percent (9 percent quarter-ob-quarter).
  • Net NPA stood at 6.3 percent against 9.3 percent year-on-year (6.2 percent sequentially).

Highlights For Mahindra Rural Housing Finance

(First Quarter, Year-on-Year)

  • Income rose 38 percent to Rs 302 crore.
  • Net profit was down 1 percent to Rs 30.9 crore.
  • AUM growth at 34 percent.
  • Gross NPA stood at 16.7 percent against 15.7 percent (13.8 percent quarter-on-quarter).
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