M&M Finance eyes 15%-20% disbursements growth in FY24

Ramesh Iyer, vice chairman and managing director of Mahindra & Mahindra Financial Services (Mahindra Finance), told that Mahindra Finance will probably report a 15%–20% annual growth in loan disbursements in the upcoming fiscal year due to a strong demand for tractor and used-vehicle loans, among other things. 
"The first trend we are noticing is that, very obviously, sentiments are still favourable. All activities appear to be higher than they were before to the implementation of COVID, and people obviously want to work harder. That is actually influencing overall offtake or volume. According to numerous published reports, there will be an increase of 8% to 12% in a variety of product categories during the course of the upcoming year.

We are convinced that even at the base level we are in, we would see a minimum of 15%–20% increase since the demand for used cars is still very strong and attractive. stated the MD. 
Iyer predicts three areas will experience growth. Pent-up demand will boost volumes, but price increases will also cause disbursements to grow. Thirdly, Mahindra Finance is expanding its market share in several products because of its broad reach and collaboration with all OEMs (original equipment manufacturers).

According to its Q3FY23 investor presentation, Mahindra Finance's loan book increased 21% year over year (YoY) to Rs 77,344 crore as of December 31. Disbursements during the December quarter totaled Rs 14,467 crore, an increase of 80% year over year. Loans for automobiles and utility vehicles made up 34% of disbursements, whereas loans for tractors and cars made up 12% and 17%, respectively.