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Mahindra Finance disburses over Rs 2,000 crore for second month in a row

Mahindra Finance, a leading non banking financial company, said the business continued its momentum in August 2021 with a disbursement of more than Rs 2,000 crore for the second month in a row.

The total disbursement at approximately Rs. 2,150 crore delivered a 57% YoY growth, albeit on a lower base of August 2020, which was impacted by the first wave of COVID-19.

The collection efficiency was reported at 97% for August 2021, further improving on 95% reported in July 2021 (collection efficiency in April, May and June was 72%, 67%, 90% respectively).

With opening of the economy and improved mobility, the Company witnessed a meaningful reduction in the NPA contracts during the month as customer cash flows improved. We believe that this is a very encouraging sign. The company expects this downward trajectory to continue in September and in months to come.

The company enjoyed a comfortable liquidity position on its Balance Sheet as on date, it said in a statement to the BSE.

Meanwhile, recently Mahindra Finance put together a strategy to make Sri Lanka a preferred market going ahead. This after completing a 58.2% acquisition in Sri Lanka based Ideal Finance at an investment of Sri Lankan Rupees 2 billion, a move which gives a toehold in the growing financial services market of that country.

Mahindra Finance entered into a contractual agreement with Ideal Finance in 2019, agreeing to acquire 58% stake by March 2021, which was mutually extended by both companies till September 2021. Mahindra Finance aims to replicate its business model with this investment in Ideal Finance thereby creating a leading financial services institution in Sri Lanka.

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