Net interest income (NII) rose 9% YoY to Rs 1,674 crore in the quarter ended 30 September 2023. Net interest margin (NIM) for the quarter was at 6.5%, impacted by higher borrowing rates coupled with change in portfolio mix in favour of better credit quality customers.

Disbursement during the quarter stood at Rs 13,315 crore, registering a growth of 13% YoY. Collection efficiency during the quarter remained strong at 96%, an improvement over the level observed in Q1 FY24 and marginal reduction over Q2 FY23.

Loan book grew 27% YoY to Rs 93,723 crore in the quarter ended 30 September 2023.

Gross Stage 3 (GS-3) was stable at 4.3% in September 2023, down from 6.7% Q2 FY23 but similar to June end level.

The company's capital adequacy stood at 18.7%. Provision coverage on Stage 3 loans remained prudent at 61.2%.

As of September end, the company said that it carried a total liquidity buffer of approximately Rs. 8,300 crore covering a little over 2.5 months' gross obligation.

On a consolidated basis, the NBFC's net profit fell 41.62% to Rs 287.24 crore on 27.54% rise in total income to Rs 3,863.47 crore in Q2 FY24 over Q2 FY23.

Mahindra & Mahindra Financial Services (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 8.4 million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

Shares of Mahindra & Mahindra Financial Services rose 2.82% to end at Rs 277.35 on Friday, 27 October 2023.