Mahindra & Mahindra Financial Services tumbled 5.36% to Rs 263.90 after the NBFC announced deferment of board meeting for considering quarterly results due to detection of fraud at one of company's branches in the North East.
In a regulatory filing made post-midnight, Mahindra Finance informed that that during the end of fourth quarter of the financial year ended 31 March 2024, a fraud was detected at one of companys branches in the North-East.
In respect of retail vehicle loans disbursed by the company, the fraud involved forgery of KYC documents leading to embezzlement of company funds. The investigations in the matter are at an advanced stage.
"The company estimates that the financial impact of this fraud is unlikely to exceed Rs 150 crore.
Investigations are underway, and necessary corrective actions have been identified and are at various stages of implementation, including arrest of few persons involved, Mahindra Finance said in a statement.
The company further stated that in view of this development, the board meeting pertaining to approval of the audited standalone and consolidated financial results of the company for the fourth quarter and financial year ended 31 March 2024, which were to be considered at the board meeting scheduled to be held on 23 April 2024, is being deferred to a later date, which shall be intimated in due course.
Mahindra & Mahindra Financial Services (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 8.4 million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.
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The NBFCs net profit fell 12.11% to Rs 552.79 crore in Q3 FY24 as against Rs 628.95 crore posted in Q3 FY23. However, total income increased 20.71% YoY to Rs 3,490.42 crore in the quarter ended 31 December 2023.
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