 "insurance, mahindra finance, m&m financial services")
Mahindra & Mahindra Financial Services on Friday announced that it will enter the life, health and general insurance business. The company will initially invest Rs 5 crore to Rs 10 crore towards technology, hiring training and certification.
In a regulatory filing, the company said, "We have approved undertaking supplemental business activity of soliciting and procuring insurance business as a corporate agent (composite) in the areas of life, health and general insurance- both group and individual."
This will be subject to obtaining necessary approvals from Insurance Regulatory and Development Authority of India (Irdai) and no-objection from the Reserve Bank of India (RBI).
It also said that the company expects net fee income from these new segments to be around 0.1 per cent to 0.2 per cent of its standalone average assets over the next 1-3 years.
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Currently, another arm of the Mahindra Group, Mahindra Insurance Brokers Ltd, is involved in insurance broking in life, non-life and reinsurance businesses. It reported an income of Rs 289 crore in the second quarter.
The NBFC, Mahindra Finance, reported a 47.5 per cent year-on-year (YoY) fall in net profit at Rs 235.2 crore for the second quarter that ended September 30, 2023. In the same quarter last year, Mahindra & Mahindra Financial Services posted a net profit of Rs 448.3 crore.
M&M Financial Services' revenue from operations increased 24.2 per cent to Rs 3,211.9 crore as compared to Rs 2,585.8 crore in the corresponding period of the preceding fiscal.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 8.5 per cent to Rs 1,645.4 crore against Rs 1,517 crore in the corresponding quarter of FY23.
