M&M Fin net profit jumps 111%

Mahindra & Mahindra Financial Services has reported a 111 per cent increase in its consolidated net profit to Rs 97 crore for the quarter ended December 2009 compared with Rs 46 crore in the same period last year. Total income of the non-banking financial company grew by 13 per cent to Rs 409 crore during the reporting period.

On a standalone basis, net profit of the vehicle finance company grew by 111 per cent to Rs 93 crore during the quarter on the back of a 68 per cent loan growth and lower provisioning. Mahindra Financial made provisions of Rs 50 crore in the quarter, which was lower by Rs 28 crore over the same period of 2008-09.

The company was planning to enter the mutual fund business and had sought market regulator Securities and Exchange Board of India’s approval to float an asset management company, Ramesh Iyer, managing director of Mahindra Finance, said.