On Friday, Mahindra & Mahindra Financial Services announced its intention to enter the life, health, and general insurance markets. The company would first invest between Rs 5 and Rs 10 crore in technology, hiring, training, and certification. According to a regulatory filing, the company said, "We have approved undertaking supplemental business activity of soliciting and procuring insurance business as a corporate agent (composite) in the areas of life, health and general insurance - both group and individual."
This is subject to the Insurance Regulatory and Development Authority of India's (IRDAI) approval and the Reserve Bank of India's (RBI) clearance.
It further stated that over the next 1-3 years, the company expects net fee income from these new sectors to be roughly 0.1 percent to 0.2 percent of its standalone average assets.
Mahindra Insurance Brokers Ltd, another subsidiary of the Mahindra Group, is currently engaged in insurance brokerage in the life, non-life, and reinsurance industries. In the second quarter, it posted a profit of Rs 289 crore.
Mahindra Finance, an NBFC, reported a 47.5 percent year-on-year (YoY) decrease in net profit of Rs 235.2 crore for the second quarter ended September 30, 2023. Mahindra & Mahindra Financial Services reported a net profit of Rs 448.3 crore in the same period previous year.
M&M Financial Services' revenue from operations climbed by 24.2 percent to Rs 3,211.9 crore from Rs 2,585.8 crore in the previous fiscal period. Net interest income (NII), which is the difference between the interest revenue a bank generates from lending and the interest it pays to depositors, increased 8.5% to Rs 1,645.4 crore in the third quarter of FY23 from Rs 1,517 crore in the previous quarter.
