Mahindra & Mahindra Financial Services

“So, overall, I believe that the cost of funds for us will be towards an upward trajectory. That's what the guidance from our side.”

“Let me just kind of clarify that the PAT growth is not, is not sustainable at the 70% levels.”

“the overall lending AUM, which is at INR 1,56,000 crores now you have a 20% coming in from the non- wheels and 80% from the wheels.”

“The core business grew 21% and the non- wheels business at 52% is a healthy sign in that direction.”

“Happy to note that this quarter also is a step in that direction, MRHFL posted a healthy INR 35 crores PAT.”

“passenger vehicle at 28%, used business at 15%, CV/CE at 16%, tractor at 13%, three-wheeler at 32%, SME at 13%, and our other businesses at 71%.”

“one is the core business, which is the wheels business, we would want to grow it at a slightly higher pace than the industry growth”

“The quantum of trade advance that we have deployed this year is clearly a clip above the normal.”

“So, I will not give exact numbers, but I would say that it's a fall from last year, the underlying commerce as well as the underlying unit disbursements for the first 10 days.”

“I would say that maybe tractor has seen a little more decline than last year.”

“at least till first half, till September end, both rural and semi-urban are actually growing at a marginally higher clip than urban and metro.”

“We have, in fact, since we're looking at a higher growth, trade advance serves as a grease for getting higher growth in Quarter 3, specifically with the festivity.”

“This does cause a drag in terms of our returns because we set aside this, we set aside this corpus which doesn't yield and causes a drag.”

“We do see ourselves going back in terms of the loan income from the Q2 levels, which, in my mind, are at the absolute base levels.”

“I also must point out our cost-to-income, which was earlier above 40%, has now slid to under 37%.”

“So, at least the incremental assets that we book will come in at a higher rate.”

“25 basis points if it's implemented on the floating book, I think this leads to almost 10 basis points of existing stock getting repriced within, you can say, reset frequency within a quarter.”

“at 18% capital adequacy with 16.2% Tier 1, we are very fairly decently capitalized for the next phase of growth.”

“So, our liquidity buffer is pretty much doubled from last year, if you see in rupee value terms.”

“So, in the ballpark, there may be little bit, you can say, flexibility of reducing this liquidity buffer, but not to a very large extent.”

“But if you look at the floating rate which we have disclosed at around 45% to 48%, I would say, largely it's linked to the repo and the treasury bills, and MCLR-linked borrowings are lesser.”

“we are sitting on a very high level and that can give us some gains if we don't see it increasing from here on for sure, the liquidity buffer, we do see possibly, optionalities of a reduction.”

“And what you will see also build up there, which I will carve out separately is our prime housing, which we started doing in August.”

“See, we plan to be in affordable housing. We plan to be in LAP. We plan to be in some segments of prime housing.”

“We are looking at a June, June of next fiscal as a possible end, end goal.”

“appointed date for this merger is 1 April 2027. And effective date, as Raul alluded, will be somewhere in the June and July.”

“We are working with a couple of banks in integrating systems.”

“Growth in the wheels business, growth in the SME business, growth in the mortgage business will require headcount.”

“Looking at asset quality, 8.1% GS2+GS3, this is pretty much all-time lows in terms of our GS2+GS3 numbers.”

“And the credit cost has been within the zip codes that we've called out between 1.3 to 1.7. Our Q2 credit cost at 1.6%.”

“We, in fact, saw sequential fall in GS3 by 3 bps, as well as GS2 which was a 7 bps decrease.”

“The recent one being in terms of the new consultation paper on insurance. While it's early days, it can have a material impact if it is implemented suo moto as is.”

“We are also very carefully watching how the drought-related scenarios in the 3 states and the 282 districts are playing out.”

“you would see that our disbursement growth has grown in a steady clip of 22%.”

“With the strong growth in disbursements, AUM growth of 15% and asset quality being under check, as well as our other operating metrics in terms of opex, etc., being very stable, we have been able to deliver a sound PAT growth of 55% at INR 882 crores.”

“I would say that, with the DuPont, there are various levers at our end, and from a 1.6 last year we have moved to a 2.2.”

“As a franchise, our ROA is at a 2.3% and our PAT has grown 68%.”

“it is adding material value to our disbursements, which are now 1,663 crores.”