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Mahindra Finance steps up collections across 282 drought-prone districts; tractor portfolio under watch

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Mahindra Finance steps up collections across 282 drought-prone districts; tractor portfolio under watch

Mahindra Finance steps up collections across 282 drought-prone districts; tractor portfolio under watch

Mahindra Finance has stepped up collections across 282 districts classified as drought-prone and reduced funding in some stressed locations, as the non-bank lender monitors potential asset-quality pressure from weak monsoons, particularly in its tractor portfolio.

Mahindra Finance has stepped up collections across 282 districts classified as drought-prone and reduced funding in some stressed locations as it prepares for potential pressure on borrowers in agrarian markets . “There are 282 districts which have been classified as drought-prone. What we have done proactively is collection, augmenting collection in these locations,” the company said during its Q2 FY27 analyst call. The company has its own collection infrastructure and can also use external infrastructure where required. Its network includes close to 9,000 franchise locations that also function as collection offices. Advt

The lender's collection approach remains “fair but firm”, with the company seeking to collect where the environment is conducive while accommodating customers facing genuine stress. Mahindra Finance's Q2 collection efficiency stood at 97 per cent, up from 96 per cent in the year-ago quarter, according to its investor presentation. Tractor book under watch The tractor portfolio is particularly relevant to the drought-related assessment, given its exposure to agrarian markets. Tractor disbursements stood at Rs 1,979 crore in Q2 FY27, up 13 per cent from Rs 1,746 crore a year earlier. For the first half, tractor disbursements rose 29 per cent YoY to Rs 4,459 crore.

8 per cent in the year-ago period, making it a larger component of the company's loan book.


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