M&M Finance defers its Q4 results after unearthing Rs 150-crore fraud
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Mumbai: Mahindra & Mahindra Financial Services (M&M Fin) indefinitely deferred fiscal fourth-quarter results after discovering a ₹150 crore vehicle loan fraud at one of its branches in the Northeast, sending shares of the non-bank lender nearly 8% lower. According to the company, the fraud involved the forgery of KYC (know your customer) documents to embezzle company funds. "Investigations in the matter are at an advanced stage. The company estimates that the financial impact of this fraud is unlikely to exceed ₹150 crore... necessary corrective actions have been identified and are at various stages of implementation, including the arrest of few persons involved," the company said in a post-midnight regulatory filing. Shares of M&M Fin fell as much as 7.9% in early trade on BSE but later recovered to close nearly 5.5% lower at ₹263.60 apiece. M&M Fin said due to the discovery of the fraud, agenda matters concerni...