Mahindra Finance net up by 32 per cent

Mumbai, Apr 27 (UNI) Mahindra&Mahindra Financial Services today reported a 32 per cent increase in stand-alone net profit at Rs 108 crore for the year-ended March 31, when compared with Rs 82 crore in the previous year.

According to an official release issued today, total income increased 47 per cent to Rs 582 crore in FY 06 from Rs 396 crore in FY 05.

The board today cleared a final dividend of 20 per cent. Along with the interim dividend of 15 per cent, the total dividend for FY06 works out to 35 per cent.

The board also cleared a proposal to hike the investment limit of FIIs to 35 from 24 per cent.

Meanwhile, Mahindra Finance MD Ramesh Iyer told reporters, ''the result are proff of the strong customer loyalty Mahindra Finance enjoys. A deep penetration in the rural market and designing pronged strategy has resulted in this robust growth. With the government focusing more on the rural markets and specifically, on the agriculture sector, we are confident of sustaining the momentum.'' The company's chief finance oficer V ravi said that despite the firming up of interest rates during the fiscal, the company could borrow more than Rs 2,500 crore in long term funds at an attractive rate of interest which has helped in increasing the company's disbursements.

He added that other factors such as strong performance by the agriculture sector and greater buying capacity of customers have influenced the company's performance.

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