Mahindra & Mahindra Financial Services on Friday reported a net profit of `318.7 crore for the December 2018 quarter, a 19.6% fall year-on-year. The profits fell on account of an 83% y-o-y increase in provisions to `224.7 crore. Total income came in at `2,246.2 crore, up 22.7% y-o-y, pushed up by a higher net interest income, which rose by 20.2% to `120.4 crore. The lender\u2019s net interest margin (NIM) stood at 8.1%, 10 bps lower than Q2FY19. The lender\u2019s asset quality improved q-o-q with gross non-performing assets (NPA) of 7.7%, down 130 basis points over Q2FY19. The Stage-3 provisioning coverage ratio stood at 26.9%. During the quarter, the lender disbursed loans worth `34,485 crore, marking an increase of 33% y-o-y. The net NPA at 5.8% was 20 bps lower over the previous quarter. The lender\u2019s expenses were up sharply during the quarter with other expenses growing at 42.5% y-o-y, and provisions rising by 83%. However, the the cost to income ratio fell to 39.7% from 42.9% in Q3FY18.