NEW DELHI: Mahindra & Mahindra Financial Services has reported a ten per cent decline in standalone profit and tax to Rs 619 crore for the January-March quarter of 2023-24. The non-banking finance firm additionally stated that in a fact-finding evaluation of the fraud in its Aizawl department through the quarter recognized 2,887 mortgage accounts as doubtlessly fraudulent in nature.
“These loans had an outstanding net recoverable balance of Rs 135.9 crore as of 31st March 2024, which have been fully provided,” Mahindra Finance stated in a regulatory submitting.
The NBFC, which final month delayed disclosure of its monetary assertion because of fraud at one in all its branches in the north-eastern states, stated that the fraud pertains to retail automobile loans disbursed by the corporate and is a case of maximum collusion between the corporate’s staff, with segregated duties, and exterior events together with automobile sellers and financial institution staff.
The fraud concerned forgery of KYC and different asset-related paperwork resulting in the embezzlement of firm funds. Following this, the corporate appointed a regulation agency and an accounting agency to undertake a fact-finding evaluation of the suspected irregularities.
The firm has carried out an exhaustive evaluation of buyer contracts throughout the portfolio at an all-India stage and has confirmed no situations of comparable fraud elsewhere.
“As a proactive step, the company has identified a few key initiatives to further strengthen controls, including but not limited to accelerating the timeline for centralization of document reviews and implementing digital due diligence tools for customer onboarding,” Mahindra Finance stated.
During the March quarter of 2023-24 fiscal, Mahindra Finance posted a complete revenue of Rs 3,706 crore, up 21 per cent over Rs 3,057 crore in the year-ago interval.
Net curiosity revenue rose 14 per cent to Rs 1,971 crore through the fourth quarter of FY24.
For the 2023-24 fiscal, the profit after tax declined 11 per cent to Rs 1,760 crore. Total revenue rose 23 per cent to Rs 13,562 crore in FY24.
“These loans had an outstanding net recoverable balance of Rs 135.9 crore as of 31st March 2024, which have been fully provided,” Mahindra Finance stated in a regulatory submitting.
The NBFC, which final month delayed disclosure of its monetary assertion because of fraud at one in all its branches in the north-eastern states, stated that the fraud pertains to retail automobile loans disbursed by the corporate and is a case of maximum collusion between the corporate’s staff, with segregated duties, and exterior events together with automobile sellers and financial institution staff.
The fraud concerned forgery of KYC and different asset-related paperwork resulting in the embezzlement of firm funds. Following this, the corporate appointed a regulation agency and an accounting agency to undertake a fact-finding evaluation of the suspected irregularities.
The firm has carried out an exhaustive evaluation of buyer contracts throughout the portfolio at an all-India stage and has confirmed no situations of comparable fraud elsewhere.
“As a proactive step, the company has identified a few key initiatives to further strengthen controls, including but not limited to accelerating the timeline for centralization of document reviews and implementing digital due diligence tools for customer onboarding,” Mahindra Finance stated.
During the March quarter of 2023-24 fiscal, Mahindra Finance posted a complete revenue of Rs 3,706 crore, up 21 per cent over Rs 3,057 crore in the year-ago interval.
Net curiosity revenue rose 14 per cent to Rs 1,971 crore through the fourth quarter of FY24.
For the 2023-24 fiscal, the profit after tax declined 11 per cent to Rs 1,760 crore. Total revenue rose 23 per cent to Rs 13,562 crore in FY24.
