The company's net interest income for the quarter was INR3,706.1 million yen, an increase of 21% from the previous year.
M&M Finance also recommended dividends. INR6.30 per share of par value INRtwo each in fiscal year 2024;
This brings the total payout to 315%, M&M Finance said when announcing its March quarter results.
Payment of dividends is subject to approval by the membership at the next 34th Annual General Meeting.
M&M Finance was earlier scheduled to report its quarterly results, but it was postponed due to fraud at one of its branches in the Northeast region.
The company said in a stock exchange filing that the actual amounts involved in the fraud were: INR135.86 million. M&M Finance said the fraud also affected its profit for the quarter and year ended March 31, 2024.
Additionally, the parent company announced that it has appointed a law firm and an accounting firm to investigate the aforementioned fraud allegations.
“Based on the results of an evaluation by the accounting firm and management, 2,887 loan accounts were identified by management as potentially fraudulent in nature.The net recoverable balance of these loans was INR135.86 million has been fully provided as of March 31, 2024,” the statement said.
The fraud concerned retail auto loans executed by the company and involved forging KYC documents, leading to misappropriation of company funds.
M&M Finance discovered the fraud in the January-March period, and several people involved in the fraud were subsequently arrested. Those involved included area business managers and other employees of the company's affected branches in the Northeast.
Mahindra & Mahindra Finance stock ended 0.57 per cent higher. INROn Fridays, it costs 266.20 yen per piece. The nonbank financial company's stock price has struggled over the past 12 months, rising nearly 7% but underperforming most of its peers.
