M&M Financial to foray into life, health, general insurance business
Mahindra & Mahindra Financial Services news: To enter the business, the company will make changes in the MOU with the permission of the shareholders. Furthermore, it will function as the corporate agent.
Mahindra & Mahindra Financial Services share price NSE, M&M Financial share price NSE: Shares of Mahindra & Mahindra Financial Services gained on Friday after the NBFC company received the board's approval to foray into the business of life, health, and general insurance—both group and individual. M&M Financial shares gained over two per cent to touch the day's high of Rs 296 on NSE, continuing the winning streak for the second session. However, M&M Financial shares slipped in red, down 0.95 per cent at Rs 286.6 on NSE.
To enter the business, the company will make changes in the MOU with the permission of the shareholders. Furthermore, it will function as the corporate agent.
What are the expected benefits?
The Corporate Agency will help the company diversify its sources of income. The expected net fee income from the said business, as per the regulatory filing, could be approximately 0.1 per cent to 0.2 per cent of its standalone average assets over the next 1-3 years.
What is the estimated amount to be invested?
"An initial investment/ outlay of approx. Rs.5 Crores to Rs 10 Crores, mainly towards technology set up, manpower hiring & training and certification costs," the company's filing read.
M&M Financial share price history
M&M Financial's stock has given a positive return of over 20 per cent in the last 12 months (from December 22, 2022). In comparison, the headline index Nifty 50 has rallied over 17 per cent.
For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs PNB 400-day FD: Here's what general and senior citizens will get in maturity on Rs 3.5 lakh and 7 lakh investments in special FDs?
Small SIP, Big Impact: Rs 1,111 monthly SIP for 40 years, Rs 11,111 for 20 years or Rs 22,222 for 10 years, which do you think works best?
SCSS vs FD: Which guaranteed return scheme will give you more quarterly income on Rs 20,00,000 investment?
Rs 3,500 Monthly SIP for 35 years vs Rs 35,000 Monthly SIP for 16 Years: Which can give you higher corpus in long term? See calculations
04:02 PM IST