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M&M Financial tanks 14% as RBI bars third-party services for loan recovery

In a circular, the RBI said that the non-banking finance company may continue to carry out recovery or repossession activities, through its own employees.

Mumbai: A security personal outside Reserve Bank of India (RBI) headquarters, in Mumbai, Wednesday, June 8, 2022. (PTI Photo

SI Reporter Mumbai
Shares of Mahindra & Mahindra (M&M) Financial Services tanked 14 per cent to Rs 192.05 in Friday’s intra-day trade, after the Reserve Bank of India (RBI) directed the company to immediately cease any recovery or repossession activities via an outsource till further orders.

At 09:55 am; the stock traded 11 per cent lower at Rs 200 apiece, as compared to 0.78 per cent decline in the Nifty 50. A combined 20 million shares changed hands on the NSE and BSE.

"The action is based on certain material supervisory concerns observed in the said non-banking finance company (NBFC), with

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First Published: Sep 23 2022 | 10:23 AM IST

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