Expenses grew by nearly 36 per cent on the year to Rs 2,874.56 crore in the quarter under review, up from Rs 2,112.94 crore in the January-March quarter of FY23.
In Q4 FY24, the company’s disbursements rose by 11 per cent to Rs 15,292 crore over Rs 13,778 crore in Q4 FY23.
For the entire FY24, there was a broad-based growth of 13 per cent Y-o-Y in disbursements to Rs 56,208 crore. The loan book expanded by 24 per cent Y-o-Y to Rs 1,02,597 crore.
“In FY24, the company strengthened its position in the financing of passenger vehicles, pre-owned vehicles, and tractors. Growth in non-vehicle businesses such as SMEs, digital finance, leasing, and other lending and non-lending financial solutions segments contributed towards achieving steady annual disbursement numbers,” Mahindra Finance said in a press release.
The collection efficiency for the quarter was recorded at 98 per cent. The asset quality continues to improve, with Stage-3 at 3.4 per cent and Stage-2 at 5 per cent in Q3 FY24.
The company has proposed a final dividend of Rs 6.30 per share.
Capital adequacy stands at 18.9 per cent, and Tier-1 capital is at 16.4 per cent.
On April 25, M&M Finance reported a financial fraud amounting to around Rs 150 crore related to its retail vehicle loans at the Aizawl branch in Mizoram.
“These loans had an outstanding net recoverable balance of Rs 135.9 crore as of March 31, 2024, which has been fully provided,” the company said.
The company has appointed a law firm and an accounting firm to undertake a fact-finding assessment of the suspected irregularities. An assessment by the accounting firm and management identified 2,887 accounts as potentially fraudulent in nature.
First Published: May 05 2024 | 5:04 PM IST
