M&M Financial Services gains 3% as RBI lifts ban on recovery via third party
The central bank has removed a ban on M&M Financial Services to carry out any recovery or repossession activity through outsourcing arrangements with immediate effect.
The central bank has removed a ban on M&M Financial Services to carry out any recovery or repossession activity through outsourcing arrangements with immediate effect.
The Mumbai-based non-banking financial company repossesses about 4,000 to 5,000 vehicles per month, using the third-party agencies and its own employees.
Ban follows death of a borrower's pregnant daughter amid a forced seizure of tractor.
The incident comes amid a high recovery rate of delinquent loans by NBFC in the first quarter of the current fiscal.
While NPAs have come off their FY18 peak, they still remain far from their all-time lows.