Mahindra & Mahindra Financial Services Disbursed Rs. 4,370 Crores in June 2024, Achieved 3% Growth

03 Jul, 2024

Mahindra & Mahindra Financial Services released the overall disbursement data for June 2024 on July 2nd, 2024. M&M Financial Services experienced a 3% YoY growth in June 2024 and the total disbursement of the company remained at Rs. 4,370 crores.

The business assets for June 2024 remained at Rs.1,06,200 crores, against the Rs. 1,05,250 crores in May 2024. With this recorded value, M&M Financial Services has an approximated growth of 4 % over March 2024 and 22 % over June 2023.

The Collection Efficiency (CE) for June 2024 remained at 95% against 96% for June 2023 and May 2024 respectively. The Q1 FY25 collection efficiency was 94%, which is equal to Q1 FY24.

The Stage-3 asset remained at 3.6% whereas it was 4.3% in June 2023 and 3.4% as of March 2024. The Stage- 2 asset is approximately 6.1%. However, it was  6.4% as of June 30, 2023, and 5.0% as of March 31, 2024.

Mahindra & Mahindra continued enjoying stable liquidity in its balance sheet with a liquidity fund of Rs. 8,000 crores in June 2024 whereas the liquidity fund for May 2024 was over Rs. 7,510 crores.

Important Terms to Know From this Report 

Collection Efficiency- The collection efficiency term is used to denote the percentage of total amounts that a lender can collect from the borrowers. A higher collection efficiency means that a loan provider company can receive the loaned money successfully. 

Stage 2 Asset- Stage 2 asset is the asset against the loans that are due for 31-89 days. 

Stage 3 Asset- Stage 3 asset is the asset against the loans that are due for more than 90 days. 

Liquidity Funds- Liquidity funds refer to the existing assets of a company that are readily available to convert into cash so that the company’s short-term liabilities are well taken care of.