M&M Financial Services - Visibility Enhances On Growth, Non-Performing Asset Reduction: ICICI Securities

Indian rupee bank notes in a container at a grocery store in Bengaluru. (Photographer: Dhiraj Singh/Bloomberg)

M&M Financial Services - Visibility Enhances On Growth, Non-Performing Asset Reduction: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Mahindra and Mahindra Financial Services Ltd., in its August business update, indicated:

  1. 57% YoY disbursement growth to Rs 21.5 billion (moderating a tad from Rs 24 billion in July). July/August trend suggests Q2 FY22 disbursement growth of more than 65% YoY/70% QoQ, albeit on a low base.

  2. M&M Financial's collection efficiency is improving month-on-month to 97%. It is still near February 2021 level and lower than March 2021 level.

  3. compared to stable-to-marginal decline trend in July, there was meaningful reduction in non-performing asset contracts in August and is expected to continue in September as well.

With revival in economic activity, there was hope on roll-backs, upgrades and provisioning write-backs.

Click on the attachment to read the full report:

ICICI Securities MMFS Company Update.pdf

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