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.