Non-banking finance company, Mahindra Finance has received a certificate of registration from insurance regulatory authority to act as a corporate agent to offer products in life, health and motor insurance, said Chairman Anish Shah in his message to shareholders.
“We have recently obtained a Certificate of Registration from the Insurance Regulatory Authority to act as a corporate agent, which would help us in offering various insurance solutions such as life, health and motor, to its customers. This would substantially augment our fee-based income in the years to come,” said Shah at the company’s AGM.
During the year, the company has diversified within the vehicle finance book, by building a strong position in the pre-owned vehicle business and the disbursements in this category have grown by 18% in the last year, Shah said.
Further, the company is committed to branching out for sustainable growth in new business categories, he said.
“Towards this, we have put in place a robust plan to diversify our product portfolio and maintain broad base liability mix, in the process being agile in our outreach. Your company has been diversifying its product lines into various portfolios like SME lending including LAP, and Leasing (Quiklyz),” Shah said.
Further, SME financing has emerged as a significant contributor, accounting for 5% of our Loan Book, Shah said, adding leasing program is on a growth path, attracting numerous reputable corporates into the client portfolio.
During the year, the company met the commitment to significantly improve asset quality. Gross stage 3 assets declined 110 bps from 4.5% at the beginning of the year to 3.4% at year end, the lowest in the last 10 years, Shah said.
“Gross stage2+3 assets came down from 10.4% to 8.4%, which can be attributed to our focus on sourcing business from customer segments within the risk guardrails, strengthening our underwriting capabilities, and deploying best-in-class collection practices,” Shah said.
Today, about 70% of our total collections happen digitally, leading to stronger collection efficiency, Shah said.