Mahindra & Mahindra Financial Services saw a 5.36% decline to Rs 263.90 following the announcement by the NBFC that a board meeting to discuss quarterly results would be postponed due to the discovery of fraud at one of the company’s North East branches.
Mahindra Finance disclosed in a post-midnight regulatory filing that at the end of the fourth quarter of the fiscal year that concluded on March 31, 2024, that fraud was discovered at one of the company’s Northeast branches.
The scam concerned the falsification of KYC documents in relation to retail car loans that the company disbursed, which resulted in the misappropriation of corporate funds. The case is being investigated at a high level.
According to the company’s calculations, the fraud’s financial impact is unlikely to surpass Rs 150 crore.
Mahindra Finance said in a statement that investigations are ongoing and that the appropriate corrective procedures, including the arrest of a few relevant parties, have been identified and are in various stages of implementation.
The company went on to say that, in light of this development, the board meeting regarding the approval of the audited standalone and consolidated financial results of the company for the fourth quarter and fiscal year ended 31 March 2024 has been postponed to a later date that will be announced in due course. The meeting was originally scheduled to take place on April 23, 2024.
One of India’s top non-banking finance companies is Mahindra & Mahindra Financial Services (Mahindra Finance), a division of the Mahindra Group. With an AUM of over $11 billion and over 8.4 million consumers, the organization focuses on the rural and semi-urban market. The organization is a prominent financier of cars and tractors that also offers fixed deposits and loans to small and medium-sized businesses.
Compared to Q3 FY23’s reported net profit of Rs 628.95 crore, the NBFC’s Q3 FY24 net profit decreased by 12.11% to Rs 552.79 crore. However, for the quarter ending December 31, 2023, total income rose 20.71% YoY to Rs 3,490.42 crore.
For More Visit: https://paisainvests.com/blog/
Disclaimer: The articles on PaisaInvests.com are solely for educational purposes. While we endeavor for accuracy, we make no guarantees regarding completeness or reliability. Readers are advised to conduct their own research and seek professional advice before making any financial decisions. We are not liable for any loss or damage incurred from the use of information provided. Additionally, we do not control the content of external websites linked within our articles.
