New Delhi: Shares of Mahindra & Mahindra Financial Services slumped by more than 11 per cent on Monday after reporting weak financial results. M&M Financial Services was down 11.65 per cent on BSE at Rs 245. Centrum Broking said in a research that the company reported disappointing earnings for 2QFY24. NIMs compression due to rising CoB is NBFC wide narrative however Mahindra Finance faced twin challenges - yield compression (upgrade to better customer segment and high proportion of interest free advances this quarter) and rising CoB.
Q2 witnessed higher credit costs due to rise in provisions.