Mahindra Finance shares recover after outsourcing ban lifted
MUMBAI, INDIA — Financial services firm Mahindra & Mahindra Financial Services (MMFSL) reported that its shares went up by 3 per cent after the Reserve Bank of India (RBI) lifted outsourcing restrictions to the company.
In the opening of the trading Friday, the stock traded 2 per cent higher at Rs238.05, as compared to 0.11 per cent decline in the S&P BSE Sensex. The stock had hit a 52-week high of Rs247.05 on January 3, 2023.
In September, the RBI prohibited MMFSL from using outsourced agents for recovery or repossession activities. This decision was made after a 22-year-old pregnant woman died trying to block loan recovery agents from taking away her father’s tractor.
The ban has finally been lifted after MMFSL made a commitment to review its recovery practices with its outsourced partners.
MMFSL said that it will “tighten the process of onboarding third party agents and strengthen accountability frameworks.”
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