Car loan lender, Mahindra & Mahindra Financial Services is hoping to obtain a 45% increase in net profits in this fiscal due to rising demand for loans in the commercial and pre-owned cars and construction equipment sector, said senior officials of the company.
Ramesh Iyer, MD said, “We will grow at 40-45 percent. The higher growth rate would come from commercial equipment, construction equipment, and second-hand vehicles”.
He said that these 3 sectors are anticipated to make up 15-20% of the company balance sheet, which mainly concentrates on rural and semi-urban divisions.
Iyer added, “We have become a significant player for Maruti. The company does not see any impact on its cost of borrowing from banks and financial institutions owing to the expected 25 basis points rise in policy rates in the second quarter monetary policy review scheduled today.”
He said further, “If it goes up, we will pass it on to customers, but we have a strategy that any rate hike of 25-50 basis points, we will try to absorb it.”
Mahindra Finance has also submitted its application for a license to work as an Asset Management Company and anticipates the authorization to be received by this fiscal. Iyer said, “We have one million customers and we are growing every month with 25,000-30,000 customers being added. We don’t want to miss the opportunity to take a financial product to this market.”
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