Healthy business momentum
News: Mahindra & Mahindra Financial services in its exchange filing has disclosed some business data and according to the same, disbursement for November stood at |2,500 crore delivering 17% YoY growth. The Collection Efficiency too improved further to 94%, up both YoY (November 2020 – Collection Efficiency was 84%) and sequentially (October 2021 - Collection Efficiency was 91%). This improved customer payment behavior has reflected in a month-on-month reduction in Stage 2 and stability in Stage 3.
Views: M&M finance has seen better business traction along with improved collections July onwards and the trend has continued for the month of November. We believe this could reflect positively on growth and asset quality performance in coming quarter.