In what has been a challenging environment for NBFCs, Mahindra Finance saw its customer base cross 6.6 millionin Q3.
Mahindra Finance on Tuesday reported a 15% y-o-y rise in its standalone net profit at Rs 365 crore for Q3FY20, on the back of a 13% growth in net interest income (NII). At the consolidated level, the net profit rose 16% to Rs 475 crore.
In what has been a challenging environment for NBFCs, Mahindra Finance saw its customer base cross 6.6 millionin Q3. The standalone assets under management (AUM) grew 16% to Rs 75,884 crore.
“The overall sentiment from the business continues to remain a little subdued. It starts with the auto space transitioning to BS VI from BS IV. The whole focus is on reducing the inventory levels and not really looking at large numbers. The buying sentiments are not picking up yet,” said Ramesh Iyer, vice-chairman and MD, Mahindra Finance, during the earnings call.
NII came in at Rs 1,371.8 crore in Q3FY20, against Rs 1,209.9 crore a year ago. Gross NPAs (stage-3) rose to Rs 5,773.3 crore, or 8.5% of the business assets, against Rs 5,203.8 crore (7.9%) in Q2. Net NPA stood stood at Rs 4,451.9 crore, or 6.7% of the business assets.