M&M Financial Stock Crash After Mahindra Finance Detects 150 Crore Rupees Retail Vehicle Loan Fraud In North East

M&M Financial Stock Price: After the revelation of fraud of Rs 150 crore in the retail vehicle loan portfolio, the stock of Mahindra & Mahindra Financial Services Limited has seen a sharp fall on Tuesday, April 23, 2024. A case of fraud has come to light in the company's retail vehicle loan portfolio which could be worth around Rs 150 crore. After this disclosure, the company also had to postpone the announcement of results for the fourth quarter of the financial year 2023-24. The results were to be announced today itself.

Mahindra & Mahindra Financial Services Limited (Mahindra & Mahindra Financial Services Limited) said in a regulatory filing with the stock exchange that in the quarter ending March 31, 2024, the company has registered cases of disbursement of retail vehicle loans at a branch of the company located in North East. I have identified fraud. The company said that the fraud has been carried out through KYC documents and the investigation in this matter is still in the advanced stage. The company says that this fraud could be around Rs 150 crore.

M&M Financial said that apart from the area business manager, other employees of the company's branch in North East are also involved in this fraud. The company has given this information to the Central Fraud Monitoring Cell of RBI and it has been identified after the people arrested for fraud. Following the revelations of the fraud, the proposed meeting of the board of Mahindra & Mahindra Financial Services to approve the January-March quarterly results on April 23 has been postponed. At present, the next date of the board meeting has not been announced yet.

After this news came out, there was a sharp fall in the shares of Mahindra & Mahindra Financial Services in the stock market. In today's session, the stock slipped down to the level of Rs 256.50 from its previous closing price of Rs 278.85. At the time of market closing, the stock closed at Rs 263.45 with a decline of 5.52 percent.

read this also

Reliance shares can make investors rich, after excellent results brokerage houses advised to buy the stock.