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This article is more than 3 month old.

M&M Financial Services to rope in Raul Rebello as new COO; shares gain

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CNBC-TV18 reported that MMFSL is looking to strengthen its top management team in a challenging environment and appoint Rebello soon. Rebello has been working with Axis Bank since January 2003, and his domain knowledge in rural lending ties in well with MMFSL’s core focus.

M&M Financial Services to rope in Raul Rebello as new COO; shares gain
The shares M&M Financial Services (MMFSL) gained on Thursday after the company is reported to induct Raul Rebello, Axis Bank’s EVP & head of rural lending & financial inclusion as its COO.
CNBC-TV18 reported that MMFSL is looking to strengthen its top management team in a challenging environment and appoint Rebello soon. Rebello has been working with Axis Bank since January 2003, and his domain knowledge in rural lending ties in well with MMFSL’s core focus.
Ramesh Iyer, VC & MD, Mahindra & Mahindra Financial Services confirmed the development while speaking to CNBC-TV18.
The rural-focused lender has been going through a rough patch. Its Q1FY22 results showed GNPA ratio rose to 15.46 percent versus 8.96 percent QoQ.
Its stressed assets too and restructured book saw some deterioration. The restructured book increased to Rs 2,069 crore in Q1FY22 from Rs 63 crore in the preceding quarter. Overall, GNPA and restructured book, together, doubled QoQ to 18.08 percent of the book versus 9.04 percent, QoQ.
An official announcement with respect to the appointment from M&M Financial Services can be expected very soon.
Speaking on the company's performance, Ramesh Iyer told CNBC-TV18 that the collections were bouncing back as things were normalising and July collections were above 95 percent.
He expects the prices of new vehicles to rise in the near future and disbursements to be strong in the coming quarters.
The next three quarters will be very important. Footfall at the dealership is high, he said.
"Around 30,000-40,000 customers, who didn’t pay earlier, have started making payments. The demand is seen in all products except HCVS and taxi/school bus operators. We are yet to see demand from the infrastructure sector opening up," Iyer said. He believes AUM growth could remain subdued in Q2FY22.
At 10:55 am, the shares of M&M Financial Services were trading 2.11 percent higher at Rs 150.05 apiece on the BSE.
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