Mahindra & Mahindra Financial Services reported a 37 per cent dip in standalone net profit in the fourth quarter due to higher loan provisions and write-offs.

The non-banking finance company, which provides financial services in the rural and semi-urban markets, logged a net profit of ₹234 crore in the reporting quarter ended March 31, 2017, against ₹370 crore in the year-ago period.

For FY17, standalone net profit declined 41 per cent to ₹400 crore from ₹673 crore in the previous financial year.

The board recommended a dividend of 120 per cent (₹2.40 per share on equity share of ₹2 each) for the financial year.

Consolidated profit after tax and minority interest, which includes the financial numbers of subsidiaries Mahindra Insurance Brokers, Mahindra Rural Housing Finance, and Mahindra Asset Management Company, fell 32 per cent to ₹278 crore during the reporting quarter ( ₹411 crore in the year-ago period). For FY17, consolidated profit declined by 34 per cent to ₹512 crore (₹772 crore in FY16).

In the reporting quarter, standalone total income was up 9 per cent at ₹1,843 crore (₹1,690 crore in the year-ago period).

The total value of assets financed rose 23 per cent to ₹8,376 crore ( ₹6,811 crore in the year-ago quarter).

Total assets under management increased 14 per cent year-on-year to ₹46,776 crore as at March-end 2017.

The company, in a statement, said: “Non-performing assets (NPAs) had increased during the first three quarters of the year in view of lower economic activities and weak farm cash-flow.

“The fourth quarter witnessed positive change with improved farm cash-flow resulting in reduction of gross and net NPAs with overall improvement in collection efficiency.”

Loan provisions and write-offs jumped to ₹361 crore in the reporting quarter as against ₹109 crore in the year-ago quarter.