Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited (MMFSL) is a rural NBFC headquartered in Mumbai, India.[4] It is amongst the top tractor financers in India and offers a wide range of financial products to address varied customer requirements.[5] The NBFC has 1000+ offices spread over 1 in every 3 villages across India with a total of more than 4.7 million customers to date.

Mahindra & Mahindra Financial Services Limited
TypePublic
NSE: M&MFIN
BSE: 532720
ISININE774D01024
IndustryFinancial services
Founded1991
HeadquartersMumbai, India
Area served
India
Key people
Ramesh Iyer, Vice Chairman & President Mahindra Financial Service Sector
ProductsLoans, Mortgage loans, Insurance, Mutual funds, Risk management[1]
Revenue ₹11,996.46 crore (US$1.7 billion)[2] (2020)
₹1,556.13 crore (US$220 million)[2] (2020)
₹1,075.15 crore (US$150 million)[2] (2020)
Total assets ₹81,792.58 crore (US$11 billion)[3] (2020)
Total equity ₹11,969.00 crore (US$1.7 billion)[3] (2020)
Number of employees
35,000+ (FY'18)
ParentMahindra & Mahindra
SubsidiariesMahindra Insurance Brokers Limited
Mahindra Rural Housing Finance
Mahindra Asset Management Company
Websitehttps://mahindrafinance.com/

Mahindra Finance started on 1 January 1991, as Maxi Motors Financial Services Limited.[6] They received the certificate of commencement of business on 19 February 1991. On 3 November 1992, Mahindra Finance changed their name to Mahindra & Mahindra Financial Services Limited.[7] Mahindra Finance is registered with the Reserve Bank of India as an asset finance, deposit taking NBFC.

In 1993 it commenced financing M&M Utility vehicles and in 1995 started its first branch outside Mumbai, in Jaipur. The company began financing Non M&M vehicles in 2002 and got into the business of financing commercial vehicles and construction equipment in 2009. 2011 was the year in which they had a joint venture with Rabobank subsidiary for tractor financing in the US and consolidated the product portfolio by introducing small and medium enterprises (SME) financing.[8]

Corporate affairs

As of November 2018, Ramesh Iyer is the Vice Chairman & President of Mahindra Financial Service Sector. [9]

Products and services

Vehicle financing

Vehicle Financing: Auto and utility vehicles, tractors, cars, commercial vehicles and construction equipment.

Pre-owned vehicle financing: Loans for used cars, multi-utility vehicles, tractors and commercial vehicle.

SME financing

Loans for varied purposes like project finance, equipment finance and working capital finance.[10]

Housing finance

Finances rural and semi-urban population to build houses.

Insurance broking

Insurance to retail customers as well as corporations through subsidiary Mahindra Insurance Brokers Limited

Asset management company (mutual fund)

Launched in June 2016, it offers mutual fund products, whose NAV is around 1000 INR. The MAMC started with an AUM of 1200 Million INR.

Mutual fund distribution

Advises clients on investing money under the brand Mahindra Finance Finsmart[11]

Subsidiaries

Mahindra Mutual Fund

Mahindra Asset Management Company Private Limited is a wholly owned subsidiary of Mahindra and Mahindra Financial Services Limited (MMFSL). Mahindra AMC Pvt Ltd, is the Investment Manager for Mahindra Mutual Fund. It started its operation in the first week of July 2016, with an AUM of 1200 Million INR and its NAV is floating around 1000 INR

Mahindra Mutual Fund endeavors to offer a variety of mutual fund schemes pan India, with special focus in rural and semi-urban areas. [12]

Mahindra Insurance Brokers Limited

In FY 2012–13, the insurance broking subsidiary, Mahindra Insurance Brokers Limited (MIBL) crossed the 8,00,000 mark in terms of the policies served. The company's total policies, at the end of 2012–13, stood at 8,39,408 for both life and non-life retail business lines. It reached a total of Rs. 600 Crores gross premium. The income increased by 85 per cent from Rs. 46.6 Crores in 2011–12 to Rs. 86.3 Crores in 2012–13. During the year, MIBL entered into a strategic partnership with LeapFrog Investments, world's largest investor in insurance for the underserved.[13] Through its subsidiary company, Inclusion Resources Private Limited, LeapFrog invested Rs. 80.4 Crores for a 15 per cent shareholding in MIBL. PayBima is the digital arm of Mahindra Insurance Brokers Ltd. and was launched to help customers compare and buy insurance policies online through their website.[14]

Mahindra Rural Housing Finance Limited

In FY 2012–13, Mahindra Rural Housing Finance Limited (MRHFL) disbursed loans aggregating to Rs. 432.9 Crores, up from Rs. 266.8 Crores in the previous year. The profit after tax for 2012-13 stood at Rs. 222.3 Crores, against Rs. 11.9 Crores in the previous year. The outstanding loan portfolio, as on 31 March 2013, stood at Rs. 879.5 Crores.[15]

Mahindra Business and Consulting Services Private Limited

Mahindra Finance's wholly owned subsidiary, Mahindra Business & Consulting Services Private Limited (MBCSPL), provides staffing services primarily to Mahindra Finance. It also serves the subsidiaries (MIBL and MRHFL) and parent company (Mahindra & Mahindra Limited). During the year, MBCSPL deputed 8,098 employees to these companies. The Profit after Tax increased from Rs. 7.1 Lacs in 2011–12 to Rs. 173.8 Lacs in 2012–13.[16] and also turnover

References
  1. https://www.mahindrafinance.com/media/237085/notice_and_annual_report_2019-20.pdf
  2. "Mahindra & Mahindra Financial Services Consolidated Profit & Loss account, Mahindra & Mahindra Financial Services Financial Statement & Accounts". www.moneycontrol.com. Retrieved 4 July 2020.
  3. "Mahindra & Mahindra Financial Services Consolidated Balance Sheet, Mahindra & Mahindra Financial Services Financial Statement & Accounts". www.moneycontrol.com. Retrieved 4 July 2020.
  4. "Mahindra & Mahindra Financial Services Overview" (PDF). LSE Securities. Retrieved 6 August 2013.
  5. "You can buy non-banking finance companies stocks this time". NSE BSE Technical Analysis. 25 February 2013. Retrieved 6 August 2013.
  6. "Mahindra & Mahindra Financial Services Ltd". The Economic Times. Retrieved 6 August 2013.
  7. "About Mahindra & Mahindra Financial Services Ltd l M&MFIN Company History". Edelweiss. Retrieved 6 August 2013.
  8. "Mahindra & Mahindra Financial Services Ltd". NDTV Profit. Retrieved 14 August 2013.
  9. "Company Profile". Reuters. Retrieved 14 August 2013.
  10. "Mahindra Finance To Venture Into Small Biz Lending". Newswire. Archived from the original on 16 August 2013. Retrieved 6 August 2013.
  11. "Mahindra Finance to venture into small business lending". The Hindu Business Line. 27 April 2013. Retrieved 6 August 2013.
  12. "Archived copy". Archived from the original on 18 March 2016. Retrieved 1 April 2016.CS1 maint: archived copy as title (link)
  13. "Mahindra & Mahindra Group takes a giant stride with LeapFrog deal". The Economic Times. 21 September 2012. Retrieved 6 August 2013.
  14. "Mahindra Insurance Brokers launches digital insurance portal PayBima".
  15. "Company Overview of Mahindra Rural Housing Finance Ltd". Businessweek. Retrieved 6 August 2013.
  16. "Company Overview of Mahindra Business & Consulting Services Private Limited". Businessweek. Retrieved 6 August 2013.
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