Mahindra Finance Reports Q4 Profit Dip

7 May 2024 , 10:04 AM

Mahindra & Mahindra Financial Services recorded a 10% decline in standalone profit and tax to ₹619 Crore for the January-March quarter of 2023-24.

At the time of writing, stocks of Mahindra Finance were trading at ₹256.15 which is a 1.44% drop than the previous close. The stock has dropped nearly 12% in the last one year, and nearly 7% dip since the beginning of the year.

A fact-finding assessment during the quarter identified 2,887 potentially fraudulent loan accounts at its Aizawl branch, with an outstanding net recoverable balance of ₹135.9 Crore as of March 31, 2024. The fraud primarily involved retail vehicle loans and implicated collusion between company employees, external parties, and forgery of KYC and asset-related documents.

The company appointed law and accounting firms to investigate suspected irregularities and confirmed no similar fraud elsewhere in its portfolio. To enhance controls, initiatives include centralizing document reviews and implementing digital due diligence tools for customer onboarding.

Total income for the March quarter of 2023-24 stood at ₹3,706 Crore, marking a 21% increase over the previous year. Net interest income rose by 14% to ₹1,971 Crore in Q4 FY24. For the full fiscal year 2023-24, profit after tax declined by 11% to ₹1,760 Crore, while total income increased by 23% to ₹13,562 Crore.

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