M&M Financial Services has reported robust growth in its financial performance for the second quarter, according to the company's latest update.

Disbursement Growth

The company disclosed an estimated disbursement of approximately ₹13,500 crore for Q2, marking a 3% year-on-year growth. This increase in disbursements reflects M&M Financial's continued momentum in its lending activities despite challenging market conditions.

Business Assets Expansion

The non-banking financial company (NBFC) has seen a significant expansion in its business assets. As of September, M&M Financial's business assets stood at approximately ₹1,26,800 crore, representing a substantial growth of about 13% compared to the same period in the previous year.

Half-Yearly Performance

For the first half of the fiscal year (H1), M&M Financial reported total disbursements of approximately ₹26,300 crore, achieving a 2% year-on-year growth. It's worth noting that this figure excludes finance lease disbursements.

Asset Quality

The company provided insights into its asset quality metrics:

Collection Efficiency

M&M Financial maintained a steady collection efficiency (CE) of 96% for Q2, which is consistent with the CE reported in the same quarter of the previous year.

Liquidity Position

The company continues to maintain a strong liquidity position, with a liquidity chest exceeding ₹8,500 crore on its balance sheet. This robust liquidity buffer provides M&M Financial with financial flexibility and stability in the current economic environment.

The latest financial update from M&M Financial demonstrates the company's resilience and growth in key areas of its business, including disbursements and asset quality management, while maintaining a strong liquidity position.

Credila , an education loan provider, is making significant moves in the financial market, seeking to raise up to $600 million through external commercial borrowing from foreign lenders. This development comes on the heels of the company filing draft IPO papers to raise ₹5,000 crore.

Foreign Loan Details

Credila is in discussions with several prominent foreign lenders, including:

• DBS
• MUFG
• Sumitomo Mitsui Banking Corp

The proposed US dollar loan is being marketed at competitive rates:

• Spreads of 135-150 basis points over SOFR (Secured Overnight Financing Rate)
• Expected interest rate of 5.5-6%

Expanding Financial Relationships

Credila has been actively broadening its lending relationships:

• Increased from 19 lenders two years ago to 29 currently
• Offshore borrowings now represent 18.4% of total debt, up from zero two years prior

Recent Ownership Changes

HDFC Bank has sold its stake in Credila to:

• EQT's Kopvoorn BV
• ChrysCapital entities

As of March, Kopvoorn holds a significant 63.96% stake in the company.

Financial Performance

Credila has shown substantial growth in its borrowings:

This increase in borrowings and slight rise in the cost of debt reflect the company's expanding operations and the changing interest rate environment.

The education loan provider's move to raise funds through external commercial borrowing, coupled with its recent IPO filing, signals a strategic push for growth and diversification of its funding sources. As Credila continues to expand its lending relationships and explore international funding options, it positions itself for potential expansion in the competitive education finance sector.