Mahindra & Mahindra Financial Services board has approved the company's expansion into the mortgage business which will include housing finance, top-up loans, lease rental discounting, home improvement and home extension loans among others.
The non-banking finance company plans to leverage its strong geographical presence in the retail lending space to exploit the mortgage lending opportunity for its existing customers as well as new customers, it said.
A meeting of the board of directors was held today to approve the company expansion plans. The company will invest about Rs 20 - 30 crore over next 12 months.
Mahindra & Mahindra Financial Services Limited shares settled at Rs 332.75 per share on the NSE, up 0.44 percent. The stock rose 20.93 percent in 2024 so far, outpacing Sensex which grew 14.69 percent in the same period.
Mahindra and Mahindra Financial Services Ltd. (MMFS) reported a net profit of Rs 513 crore for the April-June quarter of the 2024-25 financial year, marking a 45 percent increase compared to Rs 352.7 crore in the same period last year.
The Mumbai-based non-banking financial company (NBFC) recorded a net interest income (NII) of Rs 1,894 crore during the quarter, up by 16 percent year-on-year (YoY) from Rs 1,634 crore in the corresponding quarter of the previous year.
MMFS, which focuses on the rural and semi-urban markets, serves over 10 million customers. The company is a leading financier for vehicles and tractors, offers loans to small and medium enterprises (SMEs), and provides fixed deposit services.
In May, the company announced that it had received a corporate agency licence from the Insurance Regulatory and Development Authority of India (IRDAI), allowing it to sell life and general insurance products from various insurers.
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