Mahindra and Mahindra (M&M) Financial Services is expecting to achieve 15 to 20 percent growth in the assets under management (AUM) in the financial year 2020, said Ramesh Iyer, VC and MD of the company. Iyer said that about 20 percent growth in the AUM was doable due to the company's multi-product approach.
M&M Financial services reported a stable asset quality in the September quarter. The assets under management growth has been strong, disbursals came in at a 14-quarter low.
“If you look at this festival season, one would see an increase in disbursement happening which will result in growth in AUM. So we would like to maintain our stance, which is maintaining that between 15 percent and 20 percent (growth in AUM) is a doable number," Iyer said in an interview with CNBC-TV18.
Elaborating on the quarterly results, Iyer said, “The whole of September, a lot of days have been lost due to monsoon in rural India. Therefore, one has to look at it from the number of days that were available productively. Overall there has been a little slowdown for all products... and given that we are enablers, there will always be this kind of pressure."
Iyer said that the festival season is turning out to be very positive. “We have always seen the Q3 and Q4 be the best for us. We don’t expect anything different because nothing fundamentally is changing out in the rural markets,” he said.
“We have about 10,000 repossessed vehicles across our 1,300-1,400 branches all over the place, which is a very small number looking at the total live contract we have – it is close to about 3 million live contracts,” Iyer said.