>Impact

Mahindra Finance: A purse with heartstrings

When the going gets tough, the tough get going! The Covid-19 pandemic was one of the most challenging phases of Mahindra Finance’s journey. Yet, its people demonstrated a ‘Can Do, Will Do’ spirit with entrepreneurial zeal, to make the business come up stronger and better than before. Read how Mahindra Finance created an ‘impact’ful business…

A crisis like never before

Covid-19 brought about unprecedented changes to the business:

  • 15.46% gross stage 3 (loans overdue for over 90 days) in Q1 F22, a lifetime highest for the company
  • Mounting losses
  • 7% of employees tested positive
  • 40% of working days were available
  • 40% of branches were shut during the peak of the pandemic

This pandemic raised fundamental questions:

  • Was the business model sustainable, going forward?
  • Will core consumers in the taxi, tourist, transportation, and school bus segments stay viable in the near term?
  • Will cash-based collection work in the ‘new normal’?
  • Will vehicle repossession be possible given the restrictive operating conditions?

“The company has been able to report a satisfactory top-line and bottom-line performance on the back of growth in asset book and control on asset quality. We look forward to this momentum to continue in subsequent quarters.”  Ramesh Iyer, Vice-Chairman & Managing Director, Mahindra Finance

Lessons learnt

  • Sharply define the problem and challenges to be overcome
  • Discuss with, and take into confidence, all stakeholders to co-create solutions
  • Be open and flexible to workarounds and course corrections
  • Build trust with employees, customers, and other stakeholders
  • Stay balanced during stressful times, and maintain constant communication with teams
  • Keep a focused approach, along with the rigour of follow-ups, to meet execution milestones
  • Empower local teams for tactical calls.
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