Mahindra Finance

V.G.   Narayanan; Tanvi   Deshpande

Case | HBS Case Collection | March 2019

Mahindra Finance

by V.G. Narayanan and Tanvi Deshpande

Abstract

Mahindra Finance is a non-banking lender operating mainly in the rural and semi-urban areas of India. Set up in 1991, the company had grown to become a market leader with assets of $8.5 billion and a presence in 3,30,000 villages across India. Since most of Mahindra's customers are occupied in farming or allied activities, they are reliant on India's erratic monsoons for their source of livelihood. In order to manage the credit risks associated with lending to such a group, Mahindra Finance has developed ways of diversifying its risks and dealing with bad debt. The case discusses Mahindra Finance's practices of how to manage credit risk, measure this risk, make appropriate provisions for this risk, and finally communicate the risk and its management to the capital markets.

Keywords: Accounting; Business Model; Volatility; Customer Focus and Relationships; Decisions; Credit; Financing and Loans; Service Delivery; Risk and Uncertainty; Financial Services Industry; India;

Language: English

Format: Print

16 pages

Educators

Citation:

Narayanan, V.G., and Tanvi Deshpande. "Mahindra Finance." Harvard Business School Case 119-003, March 2019.

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Mahindra Finance

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