See growth returning back to rural market: M&M Financial

Mahindra & Mahindra Financial Services posted a good set of Q2 results. In an interview to CNBC-TV18, Ramesh Iyer, VC & MD of Mahindra & Mahindra Financial Services spoke about the results and his outlook for the company.

Lending yields have stabilised and borrowing cost is coming down so net interest margins (NIMs) have improved, he said.

The collection efficiencies have been extremely good. Therefore, the overall interest burden has come down, he added.

One would see a story of growth returning back to rural market, our non-performing assets (NPAs) have shown a declining trend, said Iyer.

We have a resolution for fund raising and we would raise capital only when we see growth for us and would not raise capital for quality correction, he further mentioned.

On housing subsidiary asset quality, he said, first half there will be deterioration, last year was an aberration because of demonetisation. Expect cash flow to return through harvest etc, so don’t have a concern there. Provision coverage in housing subsidiary is at 70 percent, Iyer said.