Mahindra & Mahindra Financial Services (Mahindra Finance) shares surged over 8% to Rs 166.45 on the BSE in intraday trade on Wednesday after it raised Rs 500 crore by issuing secured bonds.

The company said on Tuesday that it has raised Rs 500 crore by issuing secured bonds. On Tuesday, February 15, 2022, the board committee met and approved the issuance of 5,000 secured redeemable non-convertible debentures worth Rs 500 crore, according to a regulatory filing by Mahindra Finance.

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The bonds have a tenure of 2 years and 365 days from the deemed date of allotment, which is February 15, 2022. The bonds are slated to mature on February 14, 2025. The bonds will pay an annual interest rate of benchmark plus spread per cent. The annual spread is 1.65%.

In the third quarter ending December 2021 (Q3Fy22), the company reported a consolidated net profit of Rs 992 crore, compared to a loss of Rs 223 crore in the same period of FY21.

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However, sequentially, net profit declined 10% from Rs 1,103 crore in the second quarter ended September 2021. (Q2FY21).

Separately, the net profit was Rs 894 crore in Q3FY22, compared to a net loss of Rs 274 crore in Q3FY21. Sequentially, their net profit fell 13% from Rs 1,023 crore in Q2FY22.

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Its standalone net interest income (NII) increased by 14% year on year to Rs 1,580 crore in Q3FY22 from Rs 1,384 crore. According to an analyst, NII increased by 6% sequentially from Rs 1,493 crore in Q2FY22.

In terms of provisions and write-offs, the company made a profit of Rs 148 crore in Q3FY22, compared to the massive sum of Rs 1,387 crore set aside in Q3FY21. Sequentially, its profit fell by 60% from Rs 367 crore in Q2FY22.

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At the end of December 2021, its gross non-performing assets (NPAs) were 11.3% and its net NPAs were 5.63%.

According to a statement issued by Mahindra Finance, the third quarter saw a return to normalcy. Mobility increased even more, and there was more information on financial flows—both farm and infra—as well as vehicle demand.