Mahindra & Mahindra Financial Services Ltd. is confident of improvement in its asset quality as well as stemming its bad loans due to “deeper penetration” in rural and semi-urban markets.
“If you look at last six quarters, there is a continuous improvement in terms of asset quality,” said Ramesh Iyer, its managing director and vice chairman, in an interview with BloombergQuint. “Given the overall strong cash flow for rural markets, and deeper penetration, we don't even see a forward flow happening in terms of (asset) deterioration.”
Key Highlights: (Q3, YoY)
- Net Interest Income up 20.1 percent at Rs 1,204 crore.
- Net profit down 19.6 percent at Rs 318.7 crore (exceptional gain of Rs 65 crore in the base quarter)
- Gross non-performing assets at 7.7 percent versus 9 percent.
- Net non-performing assets at 5.8 percent versus 6 percent.
The stock erased opening gains and fell as much as 3 percent intraday to Rs 420.10 per share as of 1:20 pm. That compares with nearly 2 percent fall in the NSE Nifty Financial Services Index.
Watch the full interview here:
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