Mahindra & Mahindra Financial Services (MMFS) has announced its foray into the mortgage business, which will include a range of offerings such as housing finance, top-up loans, lease rental discounting, home improvement, and home extension loans. The expansion was approved during a board meeting held on September 13.
MMFS, a leading non-banking financial company (NBFC), plans to leverage its extensive presence in retail lending to tap into the growing mortgage lending market. This move aims to cater to both its existing customer base and new customers seeking mortgage solutions. The company is set to invest approximately Rs 20-30 crore over the next 12 months to support its entry into this sector.
Shares of Mahindra & Mahindra Financial Services settled at Rs 332.75 on the NSE, up 0.44 percent. The stock has surged 20.93 percent so far in 2024, outpacing the 14.69 percent growth of the Sensex during the same period.
MMFS reported a net profit of Rs 513 crore for the April-June quarter of FY25, reflecting a 45 percent increase from Rs 352.7 crore in the same period last year. The company’s net interest income (NII) also rose by 16 percent year-on-year to Rs 1,894 crore during the quarter.
With a customer base of over 10 million, MMFS is a key player in rural and semi-urban markets, financing vehicles, tractors, and offering loans to small and medium enterprises (SMEs). Additionally, the company provides fixed deposit services. Earlier this year, MMFS obtained a corporate agency licence from the Insurance Regulatory and Development Authority of India (IRDAI), allowing it to sell life and general insurance products from various insurers.
This strategic expansion into mortgage lending further strengthens MMFS’ position as a diversified financial services provider.
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Source: Moneycontrol
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