MUMBAI: Non-bank lender Mahindra Finance on Tuesday reported a 9 per cent decline in standalone profit to Rs 563 crore in the March quarter. The Mahindra Group’s financial services arm had posted a net profit of Rs 619 crore in the year-ago period.
Its core net interest income grew 9 per cent to Rs 2,156 crore, on a 17 per cent growth in the loan book, but restricted by a narrowing in the interest margin to 6.5 per cent from the 7.1 per cent in the year-ago period.
The overall disbursements were up by 2 per cent during the reporting quarter.
Provisions or credit costs surged 34 per cent to Rs 457 crore as against Rs 341 crore in the year-ago period, proving to be a dampener on bottom line.
On the asset quality front, the GS2+GS3 ratio was at 9.1 per cent, and the stage 3 was at 3.7 per cent.
The overall capital adequacy ratio was at a comfortable 18.3 per cent, and the liquidity buffer was Rs 10,400 crore.
