Will look to pass on the increase in cost of borrowing to consumers: M&M Financial

M&M Financial's assets under management (AUM) was at a 6-quarter low but it was not all bleak for the company as it saw strong disbursement growth while asset quality improved.

In an interview with CNBC-TV18, Ramesh Iyer, VC and MD of the company spoke about the latest happenings in his company and sector.

Disbursement growth has been strong in Q3, he said.

We do believe that the cash flow in the rural economy will hold up, he added.

Correction to the asset quality is an outcome of recovery, said Iyer.

The incremental cost of funds is lower than the average cost of the current book, he further mentioned.

Interest rate couple of months back was lower. The borrowing cost would still be lower than the average cost. If the borrowing cost keeps going up, at some stage, we will decide that it also needs to be passed on to consumers, he said.

For the full interview, watch accompanying video...