M&M Financial Services shareholders have given their approval to several significant resolutions at the company's 35th Annual General Meeting (AGM) held on July 22, 2025. The decisions mark important steps for the financial services giant's future operations and governance.

Increased Borrowing Capacity

One of the key resolutions passed at the AGM was the increase in the company's borrowing limits under section 180(1)(c) of the Companies Act, 2013. Shareholders approved raising the limit to Rs. 1,50,000 crore, a move that significantly enhances Mahindra Finance's ability to access funds for its operations and growth initiatives.

Director Re-appointment

Dr. Rebecca Nugent received shareholder approval for her re-appointment as an Independent Director for a second term of five consecutive years, from March 5, 2026, to March 4, 2031. Dr. Nugent brings over 15 years of experience in university-level academia, specializing in statistics and data science. Her expertise includes consulting, research, applications, education, and administration in these fields.

New Secretarial Auditor

The AGM also saw the appointment of M/s. Makarand M. Joshi & Co., Company Secretaries, as the Secretarial Auditor for Mahindra Finance. The firm has been appointed for a five-year term from FY 2025-26 to FY 2029-30, effective April 23, 2025. M/s. Makarand M. Joshi & Co. is known for its expertise in corporate governance and compliance, with over 25 years of experience in the field.

Shareholder Participation and Voting Results

The AGM, conducted through video conferencing, saw active participation from shareholders. The voting results revealed strong support for the proposed resolutions:

Other Approvals

Shareholders also approved the company's audited standalone and consolidated financial statements for the financial year ended March 31, 2025, along with the reports of the Board of Directors and joint Statutory Auditors. Additionally, the declaration of a final dividend on the equity shares for the financial year ended March 31, 2025, received shareholder approval.

These decisions reflect Mahindra Finance's commitment to strong corporate governance and strategic growth. The increased borrowing limit, in particular, positions the company to capitalize on future opportunities in the financial services sector.

Financial Highlights

M&M Financial Services posted a 3% year-on-year increase in standalone Profit After Tax (PAT) for the quarter ended June 30, reaching Rs 530.00 crore compared to Rs 513.00 crore in the same period last year. The company's loan book grew by 15% year-on-year, with total assets under management (AUM) rising to Rs 1,22,008.00 crore from Rs 1,06,339.00 crore in the previous year.

Total income for the quarter stood at Rs 4,438.00 crore, marking an 18% increase from Rs 3,760.00 crore in the corresponding quarter of the previous fiscal. The Net Interest Income (NII) also saw a healthy growth of 18%, reaching Rs 2,285.00 crore.

Asset Quality and Disbursements

The company's asset quality remained within its guided range, with Gross Stage 3 (GS3) assets at 3.8% and GS2+GS3 at 9.7%. The credit cost for the quarter was reported at 1.9%.

Disbursements for the quarter showed a marginal increase of 1% year-on-year, totaling Rs 12,808.00 crore. Notably, tractor disbursements grew by 21% compared to the same quarter last year.

Liquidity and Capital Adequacy

Mahindra Finance maintained a strong liquidity position with a buffer of over Rs 10,100.00 crore. The company's capital adequacy ratio stood at a healthy 20.6%, with Tier-1 capital at 17.9%.

Management Commentary

Raul Rebello, Managing Director & CEO of Mahindra Finance, stated, "We have started the fiscal year with a steady performance, maintaining our focus on sustainable growth and asset quality. The modest growth in disbursements, particularly in the tractor segment, reflects our strategic approach in current market conditions."

Senior Management Change

In a significant development, Mahindra Finance announced the appointment of Ms. Ketaki Suklikar as the new Chief Legal Officer, effective November 1. Ms. Suklikar, who brings over 20 years of legal experience, will replace Ms. Farida Balsara, who will transition back to Mahindra & Mahindra Limited.

Ms. Suklikar is currently the Legal Head of Mergers & Acquisitions at Mahindra Group. She will join Mahindra Finance as 'Chief Legal Officer – Designate' from September 1, to ensure a smooth transition.

Looking Ahead

As Mahindra Finance navigates through the fiscal year, the company remains committed to sustaining growth in its core vehicle finance portfolio while accelerating expansion across non-vehicle segments. With a focused push on MSME and LAP financing, continued digital transformation, and emphasis on enhancing customer experience, Mahindra Finance appears well-positioned for balanced and sustainable growth in the coming quarters.

The company's strategic initiatives and the new addition to its senior management team signal its intent to strengthen its market position and adapt to the evolving financial services landscape in India.