Net interest income (NII) rose 7% YoY to Rs 1,675 crore in the quarter ended 30 June 2023. Net interest margin (NIM) for the quarter was at 6.8%, impacted by change in portfolio mix and increased interest costs.

Disbursement during the quarter stood at Rs 12,165 crore, registering a growth of 28% year on year. Collection Efficiency remained strong at 94%, similar to the level observed in Q1 FY23.

Loan book grew 28.1% YoY to Rs 86,732 crore compared to Q1 FY24 aided by increase in disbursements.

Gross Stage 3 (GS-3) came down marginally from 4.5% in March to 4.3% in June, aided by focused collection initiatives. 

The company's capital adequacy stood at 21.2%. Provision coverage on Stage 3 loans maintained at 60.1%.

As of June end, the company said that it carried a total liquidity buffer of approximately Rs 9,350 crore - covering 3 months' obligations.

On a consolidated basis, the NBFC's net profit surged 51.01% to Rs 362.22 crore on 24.81% jump in total income to Rs 3,636.91 crore in Q1 FY24 over Q1 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 slipped 3.96% to end at Rs 299.35 on the BSE.