Mahindra Finance

Mahindra & Mahindra Financial Services Ltd. reported a 10 percent decline in third-quarter net profit, which fell to Rs. 826 crore, impacted by rising funding costs and margin compression in its lending portfolio. While loan growth remained healthy, higher interest expenses and competitive pressure on yields weighed on profitability. Asset quality remained stable, supported by disciplined risk management and proactive collections.

Mahindra Finance, a prominent non-banking financial company (NBFC) under the Mahindra Group, reported a 9% drop in standalone profit for the March quarter, posting Rs 563 crore compared to Rs 619 crore in the same period last year. Despite a 17% growth in its loan book and a 9% rise in net interest income, the company faced pressure on margins and a sharp increase in provisions for bad loans. These factors impacted the company's bottom line. Mahindra Finance’s asset quality and liquidity remain strong, with an adequate capital adequacy ratio and significant liquidity reserves.