Strategic expansion and innovative products are driving record-breaking success for Mahindra Ideal Finance.

Despite the severe economic headwinds in Sri Lanka, Mahindra Ideal Finance Limited (MIFL), a subsidiary of Mahindra Finance, has not only weathered the storm but emerged stronger, achieving record disbursement numbers in May 2024.

Enhancing customer experience

MIFL based in Sri Lanka and a subsidiary of Mahindra Finance, exemplifies the success of Mahindra Finance’s expansion strategy in Asian markets. By leveraging Mahindra Finance’s rich heritage in financial services and the local talent pool, MIFL is set to become a prominent financial services organisation in Sri Lanka. This strategic approach, combined with the company’s commitment to enhancing its customer value proposition through bespoke financial products, has led to a remarkable milestone.

Strategic initiatives

In the latter half of the previous fiscal year, MIFL’s key financial parameters improved substantially, outpacing market assessments. This growth was driven by a diversified portfolio of financial products, including Gold Loans, Mortgage loans, SME loans, consumer finance loans, personal loans, Fixed deposits, and leasing for personal vehicles, commercial vehicles, and two and three-wheelers.

MIFL’s success can be attributed to several strategic initiatives. The company has consistently focused on expanding its footprint across Sri Lanka, establishing branches in strategic locations to enhance customer reach and accessibility. This strategy has led to a personalised customer experience, helping to acquire a larger consumer base and retain existing customers. Additionally, the introduction of innovative products like ‘Speed Draft,’ a unique loan against vehicle product targeted at the SME segment, has bolstered their market presence.

A cautious approach

MIFL’s strong credit rating has also played a crucial role in its success. The company’s treasury team has leveraged this rating to secure competitive borrowing rates, enabling MIFL to offer attractively priced lending products while maintaining healthy net interest margins.

Despite the severe economic crisis in Sri Lanka, MIFL managed to thrive by being extremely cautious in disbursing fresh loans and focusing on customers with low credit risk.

The company maintained healthy cash positions, which boosted the confidence of bankers and ensured business continuity. Furthermore, continuous investment in IT capabilities and branch network expansion positioned MIFL for rapid growth as the economy began to recover.

Looking ahead, Mahindra Ideal Finance aims to become a significant player in Sri Lanka’s financial services industry by providing a wide range of digitally enabled financial solutions to diverse clientele. By capitalising on Mahindra Finance’s 30+ years of expertise and Ideal Finance’s market knowledge, MIFL is poised for sustained growth and continued success in the Sri Lankan market.