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
- 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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