More Stories

Informist, Tuesday, Aug. 26, 2025

 

By Ashutosh Pati

 

MUMBAI – Rural customers seem to have pressed pause on plans to take loans for tractors after the government proposed an overhaul of the goods and services tax structure, Raul Rebello, managing director and chief executive officer of Mahindra & Mahindra Financial Services Ltd. said Tuesday on the sidelines of FIBAC 2025, organised by the Federation of Indian Chambers of Commerce and Industry and the Indian Banks' Association.

 

Rebello said loans in this segment will revive once there is clarity around the GST rates. "There's a little bit of a pause because of the ambiguity. I think customers have pressed the pause button. Once, there is clarity on the GST rates, people (will) restart," he said.

 

Despite the brief pause, the non-bank financial company expects positive growth in rural areas because of good cash flows. "The cash flows have been good (in the rural areas). So we expect positive (growth) this year, better than last year," Rebello said.

 

Prime Minister Narendra Modi announced on Independence Day that the government was reviewing the indirect tax regime and next-generation reforms will be brought in by Diwali. He said tax on regular-use items will be brought down significantly, which will help lower prices of such goods and also help domestic micro, small, and medium enterprises. 

 

The Centre had proposed continuing with the 5% and the 18% tax slabs under GST in its recommendations to the rate rationalisation panel constituted by the GST Council, Informist had reported on Aug. 15, quoting a senior government source.

 

The vehicle financier had registered a 21% disbursement growth in the tractor lending business in the June quarter. The company has plans to increase its market share in this segment in 2025-26 (Apr-Mar) "because we think the tailwinds are very favorable", the company's management had said in a post-earnings analyst conference call in July.
 

The vehicle financier's net profit for the June quarter rose 3.2% on year to INR 5.30 billion. Sequentially, the net profit declined 6% from INR 5.63 billion in Jan-Mar. Total revenue from operations increased 18.7% on year and 4.2% on quarter to INR 44.19 billion. Of this, the company's interest income was INR 41.65 billion in the June quarter, up 15.3% on year and 3.7% on quarter. 

 

At 1421 IST, shares of the company were 1.6% lower at INR 261.85 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.