MUMBAI: Mahindra Finance saw its profits decline by 75 per cent to Rs 68 crore in the June quarter as against Rs 269 crore during the corresponding period last year owing to an increase in provisions for stressed loans and elevated costs of financing due to tight liquidity conditions for non-banks.

The profit for the consolidated business, which includes the insurance brokerage business, declined by 66 per cent in this period to Rs 108 crore as against Rs 322 crore. The NBFC’s asset under management grew 22 per cent and is Rs 71,000 crore as against Rs 58,700 crore last year driven mostly by growth in the loans to finance CVs which now make for 19 per cent of all loans given by the NBFC as against 15 per cent last year.

Loans for utility vehicles (UVs) at 26 per cent of the total advances constituted the biggest asset chunk.

The non-bank’s total income in the reporting quarter grew by 24 per cent to Rs 2,413 crore as against Rs 1,940 crore last year. Asset quality improved on an annual basis but deteriorated sequentially.

Gross NPA ratio came in at 5.7 per cent for the June quarter up by about 90 basis points from 4.8 per cent which was reported for the March quarter results. GNPA for June quarter last year was 6.3 per cent.

Provisions worth Rs 6,196 were made in the quarter to stressed loan pools, a 110 per cent rise from Rs 2,938 crore provisions taken by the NBFC in the corresponding quarter last year.