ANI
23 Sep 2022, 12:48 GMT+10
Mumbai (Maharashtra) [India], September 23 (ANI): The share price of MahindraMahindra Financial Services Limited crashed by more than 14 per cent on Friday a day after the Reserve Bank of India (RBI) barred it from using third-party recovery agents.
On the BSE, the share of MahindraMahindra Financial Services Limited was trading 11.42 per cent down at Rs 198.20. The scrip crashed to a low of Rs 192.05 in the intra-day against its previous day's close at Rs 223.75.
The Reserve Bank of India on Thursday announced that it has directed MahindraMahindra Financial Services Ltd (MMFSL) to "immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders."However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees, the RBI said.
This action is based on certain material supervisory concerns observed in the said NBFC, with regard to the management of its outsourcing activities, the central bank added.
Reacting on the RBI action, MahindraMahindra Financial Services Limited said, "In the normal course of its business, the Company repossesses about 4000 to 5000 vehicles per month, using the third-party agencies and its own employees. The Company expects this number to go down temporarily by about 3000 to 4000 per month, as the Company implements the RBI order with immediate effect.""The Company has not outsourced any collection activities in its vehicle finance business to any third-party agencies and therefore, the Company does not expect any impact on the collections in this business. As on 30th June 2022, the count of contracts under Stage 3 was 1.35 Lac and the Company carried a sufficient provision of 58 per cent on these assets (inclusive of 100 per cent provision on contracts with age of 18 months)," MahindraMahindra Financial Services Limited said in a regulatory filing to the stock exchanges.
The vehicles that are repossessed are mostly classified under Stage 3 and therefore, this temporary halt to repossession activity using the third-party agencies is not expected to have any material impact either on the financials or on Net Stage 3, it said. (ANI)Get a daily dose of Japan Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Japan Herald.
More InformationBRISBANE, Queensland, Australia - Two French girls barely out of high school remain behind bars after their arrival into Australia's...
Lithuanian organizers have banned athletes from Russia and Belarus from representing their countries Organizers of the Vilnius Marathon...
(Photo credit: Jim Dedmon-Imagn Images) England's Paul Waring announced Monday he will not participate in The Open Championship this...
Beijing [China], July 14 (ANI): External Affairs Minister S Jaishankar held a bilateral meeting with his Chinese counterpart, CPC Politburo...
BEIJING, 14th July, 2025 (WAM) - A technical team from Dubai's Roads and Transport Authority (RTA) has observed comprehensive field...
BEIJING, July 14 (Xinhua) -- Chinese Foreign Minister Wang Yi said Monday that China and India should adhere to the direction of good-neighborliness...
NEW YORK CITY, New York: Bitcoin surged to a new all-time high this week, buoyed by growing institutional interest and a wave of pro-crypto...
SHENZHEN, China: As global chip competition intensifies, Huawei Technologies is exploring new markets in the Middle East and Southeast...
LONDON/NEW YORK CITY: American grocery bills may be headed higher as coffee and orange juice prices face upward pressure from new tariffs...
BATTLE CREEK, Michigan: In a major consolidation of iconic food brands, WK Kellogg has agreed to be acquired by the owner of Ferrero...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...