Net interest income for the quarter stood at Rs 1,723 crore, which is higher by 13% YoY. Meanwhile, total income rose 24% YoY to Rs 3,057 crore for the reporting period.
Disbursement for the quarter came in at Rs 13,778 crore and was up 50% on a YoY basis. Consequently, the loan book increased by 27% to Rs 82,770 crore.
The Board has recommended a dividend of Rs 6 per equity share of a face value of Rs 2 each (i.e. 300%) for the financial year ended March 2023.
The company’s capital adequacy was healthy at 22.5%. As of March-end, it carried a total liquidity buffer of approximately Rs 10,400 crore.
GS-3 improved to 4.5% in Q4FY23 from 5.9% in Q3 FY23, supported by focused collection initiatives and macro tailwinds. Provision coverage on Stage-3 loans was maintained at 59.5%.
For the full year, the company said it strengthened its leadership position across tractors, Mahindra Auto, and non-Mahindra vehicle segments.It also attained the leadership position in the preowned car segment during the quarter.
“A robust growth across established vehicle segments and a steady scale-up in a nascent business of SME enabled us to clock our highest ever annual disbursements at Rs 49,541 Crores. The twin strategy to grow mass-affluent category (improve asset quality) and scale pre-owned asset book (improve margins) is progressing well,” the company said in a filing.
SME asset book, which is now upwards of Rs 4,400 crore, has grown 10% sequentially and contributes over 5% of the total business assets.
Healthy disbursements during the year have helped grow the book to Rs 82,770 crore, a growth of 27% YoY.
The company was able to partially offset the cost of fresh borrowing by increasing the yields on current disbursements, which helped it in protecting net interest margins.
On Friday, Mahindra Finance stock closed 0.88% higher at Rs 259.10 apiece on NSE.
