Tailwind ahead for M&M Financial Services as asset quality improves

Improving rural sentiment augurs well for growth and asset quality

Mahindra and Mahindra Financial Services (M&M Financial) reported a good December quarter (Q3) because of growth in its core business, led by an improvement in asset quality.

Besides a 44 per cent year-on-year (y-o-y) surge in net interest income, its non-performing assets (NPAs) declined in Q3. Helped by a 53 per cent y-o-y decline in provisioning for loans, the company reported a net profit of Rs 3.42 billion (standalone operations) in Q3, against a loss of Rs 156 million in the year-ago quarter. After excluding the income from a stake sale in a subsidiary worth Rs 650 million, the company’s