Mahindra Finance Q1FY25: Steady Growth, Strategic Expansion, and Digital Focus

Mahindra & Mahindra Financial Services Limited (Mahindra Finance), a leading NBFC in Emerging India, reported positive results for the quarter ended June 30, 2024 (Q1FY25). Here’s a breakdown of the key highlights:

Financial Performance

• Business Assets: Grew 23% YoY to ₹1,06,339 crore, demonstrating a healthy loan portfolio.
• Disbursement: Maintained growth with ₹12,741 crore disbursed, reflecting a 5% YoY increase.
• Asset Quality: Remained stable with Stage-2 and Stage-3 assets below 10%. Stage-3 assets stand at 3.6%, well within the company’s risk tolerance.
• Capital Adequacy: Maintained a strong financial position with a capital adequacy ratio of 18.5% and a comfortable liquidity buffer of ₹8,216 crore.

Market Leadership and Expansion:

• Dominant Player: Mahindra Finance remains a top financier in three-wheelers, passenger vehicles, tractors, and the pre-owned vehicle segment.
• Strategic Growth: The company is actively expanding into new business verticals like SME lending, loan against property (LAP), and leasing (Quiklyz) with these portfolios showing promising growth (e.g., SME portfolio disbursement up 68% YoY).
• Digital MSME Partnership: Partnered with Lendingkart to offer business loans to SMEs, recognising the sector’s potential.

Digital Transformation

• Customer Focus: Mahindra Finance prioritises digital transformation to provide seamless customer experiences, faster turnaround times, and improved self-service options across products.
• Data-Driven Approach: The company leverages data, AI/ML, and analytics to achieve hyper-personalization, enhance asset quality, and refine underwriting processes.
• Employee Experience: Transformation initiatives are planned for FY25, keeping employee experience at the forefront.

Insurance Play

• New Revenue Stream: Mahindra Finance obtained a license to sell life and general insurance policies, offering comprehensive financial solutions to customers.
• Growing Partnerships: The company has already partnered with six insurance companies and anticipates further collaborations.

Mahindra Finance is unwavering in maintaining the value and recognition of its brand. Through enhanced procedures for compliance, risk management, and governance, the organisation continuously reaffirms its dedication to honesty, openness, and moral behaviour.

About Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India’s leading non-banking finance companies. Focused on the rural and semi-urban sectors, the Company has over 10 million customers and has an AUM of over USD 12.5 Billion.

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