Ramesh Iyer, VC and MD of M&M Financial said that the average cost of fund for M&M remains at 8.3-8.4 percent , hence there is no need to pass it to customers
Ramesh Iyer, Vice Chairman and Managing Director of Mahindra & Mahindra Financial Services, spoke to CNBC-TV18 about the company's business plans and cost of fund.
"Rise in cost of funds not steep enough to pass on to the customers," said Iyer.
"The average cost of fund for us still remains at about 8.3-8.4 percent since we have well matched fund that we have taken and therefore any new borrowing comes with a new rate and that comes at about 8.7-8.8 percent but the average is still at about 8.3-8.4 percent," he added.
Iyer further said that they need to see customer willingness to pay if demand on asset side is natural.
"As a finance company we are at least very clear that we must have the margin orientation very high and do only as much business that we believe can be done through the cost risk that can be passed on to the consumer. As a finance company I do not think we are here to absorb all of that," Iyer added.Watch the video for more...