Mahindra Finance standalone net income rises 14% to Rs 684 cr in Q4

The company said during the quarter, its disbursement grew 50% to Rs 13,778 crore, taking the loan book to Rs 82,770 crore, which clipped at 27% across 1 million new loan contracts

Mahindra Finance on Friday reported a 14 per cent growth in its net income at Rs 684 crore for the March quarter on a standalone basis, buoyed by healthy loan sales and the resultant increase in net interest income.

The company said during the quarter, its disbursement grew 50 per cent to Rs 13,778 crore, taking the loan book to Rs 82,770 crore, which clipped at 27 per cent across 1 million new loan contracts.

For the full year FY23, disbursements rose 80 per cent to Rs 49,541 crore.

Net interest income also grew 24 per cent to Rs 3,057 crore in the reported quarter. With this, the company's full-year revenue stood at Rs 11,056 crore from which it earned Rs 1,984 crore, which is 101 per cent more than it had earned in FY22.

During the March quarter, the net interest margin was at 7.4 per cent or Rs 1,723 crore, which is up 13 per cent.

Gross bad loans ratio improved to 4.5 per cent from 5.9 per cent, while net bad loans was 1.9 per cent. Its provision coverage ratio stood at 59.5 per cent, and capital adequacy at 22.5 per cent.

The company proposed a dividend of Rs 6 per share or 300 per cent for the year.