M&M Financial Services has announced its Q3FY26 business update, reporting steady operational performance with disbursements reaching ₹17,600 crore, marking a 7% year-on-year increase. The NBFC's latest disclosure demonstrates consistent growth momentum while maintaining strong asset quality metrics, with notable improvements in early delinquencies signaling rural market recovery.

Strong Disbursement and Asset Growth Performance

The company's Q3FY26 performance reflects robust business expansion across key operational metrics, with significant growth in both disbursements and overall business assets.

The disbursement figures exclude finance lease transactions, providing clarity on the company's core lending operations. Nine-month disbursements reached ₹43,900 crore, up 4% year-on-year, indicating sustained business momentum throughout the fiscal year.

Asset Quality Shows Improvement with Stable NPAs

The company maintained stable asset quality metrics with Stage-3 gross NPAs remaining in the 3.9% to 4.0% range, while early delinquencies showed significant improvement, reflecting rural market recovery trends.

Stage-3 assets remained stable in the 3.9% to 4.0% range as of December 31, 2025. Early delinquencies showed notable improvement, with Stage-2 assets declining to 5.4%-5.5% from 5.8% in the September quarter and significantly better than 6.3% recorded a year earlier, indicating strengthening rural recovery.

Collection Efficiency and Liquidity Position

The company maintained its collection efficiency at 95% for Q3FY26, unchanged from the year-ago period, demonstrating effective recovery mechanisms and stable customer payment behavior. M&M Financial Services maintains a comfortable liquidity position with a buffer exceeding ₹8,850 crore as of December 31, 2025.

This substantial liquidity provides adequate resources to support business operations and growth initiatives while managing potential market uncertainties.

Market Performance and Outlook

Shares of the NBFC ended 0.61% lower at ₹401.70 ahead of the business update announcement. The company will release detailed financial results for the December quarter at a later date. The Q3FY26 metrics indicate the company's ability to maintain operational stability while achieving steady growth, with improving asset quality metrics reflecting a balanced approach to business expansion and effective risk management in the recovering rural market environment.

The government has undertaken a comprehensive review of foreign banking proposals as an inter-departmental committee evaluates applications from international financial institutions seeking to establish operations in India. The structured approach demonstrates the government's systematic oversight of foreign banking sector expansion.

Committee Structure and Leadership

The inter-departmental committee (IDC) operates under the chairmanship of Department of Financial Services (DFS) Secretary M Nagaraju, functioning as the nodal department for evaluating both foreign and domestic banking proposals. The committee's composition reflects a multi-ministerial approach to banking sector oversight.

Application Review Process

The committee's recent meeting focused on examining proposals received from the Reserve Bank of India for foreign banks seeking various forms of establishment in India. The applications encompass multiple operational structures that foreign banks can adopt for their Indian presence.

The types of establishments under review include:

• Branch operations
• Representative offices
• Subsidiary formations

Following detailed examination and deliberations, the committee recommended the applications placed before it, indicating a positive assessment of the proposals under consideration.

Multi-Layered Evaluation Framework

The evaluation process incorporates a comprehensive assessment methodology that extends beyond purely financial considerations. The committee seeks inputs from different ministries to conduct thorough due diligence on each proposal.

This multi-dimensional approach ensures that foreign banking proposals align with India's broader regulatory framework and national interests before receiving approval.

Strategic Oversight Mechanism

The IDC represents the government's structured approach to managing foreign banking sector entry and expansion in India. The committee's mandate extends to both foreign and domestic banking proposals, ensuring consistent evaluation standards across all applications.

The consultation process involves extensive coordination among member ministries and departments, with each contributing specialized expertise to the overall assessment. This collaborative framework enables comprehensive evaluation that addresses various aspects of banking sector development while maintaining regulatory integrity and national security considerations.