See recovery in Q4; no impact on new NBFC norms: M&M Fin

M&M Financial is hopeful of seeing recovery in the fourth quarter of the current financial year, says CFO V Ravi. The company reported a net profit of Rs 164 crore for December 2013 quarter as against Rs 200 crore in the corresponding quarter a year ago.Reacting to the disappointing results, shares of M&M Financial Services plunged as much as 8.5 per cent to hit an intraday low of Rs 232.35 on Thursday, but later recouped some of the intraday losses.

Also Read: Net slumped on high provisions; south mkt stressed: M&M FinRavi says the delayed harvest in southern states has pushed recovery to fourth quarter. “We expect to maintain market share for the full year,” he told CNBC-TV18’s Latha Venkatesh adding, “…margins are likely to trend upwards hereon.”Meanwhile, the Reserve Bank of India (RBI) said that rules for restructuring loans by non-banking financial companies will be the same as those of banks. The key provisions include that the relaxation or extension of commencement of projects will not amount to restructuring for infrastructure, non-infrastructure and corporate real estate projects, the Reserve Bank of India said in a statement.The central bank also said a special classification benefit will be provided to corporate debt restructuring cases, including small and medium enterprises, until the end of March 2015. The new norms, however, won’t impact NBFCs with larger retail portfolios, says Ravi.