Mahindra Finance Faces Profit Dip Despite Loan Growth

Mahindra Finance reported a 9% drop in standalone profit for the March quarter, due to increased credit costs and narrowing interest margins, despite loan book growth. Provisions surged 34%, affecting profitability, though the company's capital adequacy and liquidity remain strong.

Non-bank lender Mahindra Finance announced a 9% decline in standalone profit to Rs 563 crore for the last quarter as a rise in provisions weighed on its financial results.

Despite a 17% growth in loan book, core net interest income only saw a 9% rise due to narrowing interest margins.

The company faced a surge in credit costs by 34% to Rs 457 crore, impacting its bottom line. Nevertheless, Mahindra Finance maintained a solid capital adequacy ratio of 18.3% and holds a liquidity buffer of Rs 10,400 crore.

(With inputs from agencies.)