With opening of the economy and improved mobility, Mahindra Finance witnessed a meaningful reduction in the NPA contracts during the month as customer cash flows improved
Mahindra Finance disbursed ₹2,150 crore in August as business momentum continued. The NBFC arm of Mahindra Group registered a 57 per cent year-on-year growth on low base effect of August 2020, which impacted by the first wave of Covid-19.
This was second month in a row that the rural financing company saw disbursements over ₹2,000 crore, it said in a regulatory filing on Friday.
“The collection efficiency was reported at approximately 97 per cent for August 2021, further improving on 95 per cent reported in July 2021 (collection efficiency in April, May and June was 72 per cent, 67 per cent, 90 per cent, respectively)," Mahindra Finance said.
“With opening of the economy and improved mobility, the Company witnessed a meaningful reduction in the NPA contracts during the month as customer cash flows improved. We believe that this is a very encouraging sign. The company expects this downward trajectory to continue in September and in months to come," it further added
Mahindra Finance said it enjoyed a comfortable liquidity position on its balance sheet as on date.
Its shares closed Friday's trade at ₹165.25, down 1 point or 0.60 per cent.