Mahindra and Mahindra Financial Services on Wednesday announced a standalone net profit of ₹894 crore in the third quarter of 2021-22 as compared to the reduction of ₹274 crore in the previous fiscal. “Impairment reversals led to healthy profit after tax for the quarter,” said Mahindra Finance in an announcement.
However, this was less than the net profit of ₹1,022.9 crore in the second quarter of the current fiscal. Total earnings for the quarter under review declined by one per cent year-on-year to ₹2,543 crore. Meanwhile, the Net interest income, surged by a significant 14 per cent to reach ₹1,580 crore.
The gross Stage 3 indicated a steady return from 12.7 per cent in September to 11.3 per cent in December, thereby reaching ₹437 crore from Stage 3 provisions, the company announced. Total disbursements increase up to 28 per cent and 24 per cent consecutively to ₹8,032 crore. Collection efficiency was 95 per cent in the quarter against 88 per cent a year ago.
Gross NPA as per IRACP criteria was ₹10,897 crore as of December 31, 2021, as an impact to the RBI’s circular on prudential standards on income recognition, asset classification and provisioning pertaining to progress. “The management believes that enhanced collection and legal efforts, including repossessions and settlements, should help reduce gross NPA (IRACP) by March-22 end,” it notified.
The company may be expected to make an additional provision in the span of ₹500 crore to ₹1,500 crore in the fourth quarter of this fiscal in an attempt to make net NPA under IRACP norms below 6 per cent, it further said.
