Mahindra & Mahindra Financial shares tank 5.50% as firm detects fraud

New Delhi: Shares of Mahindra & Mahindra Financial Services tanked 5.50 per cent after the company deferred its board meeting, scheduled for Tuesday, saying it had detected fraud at one of its branches in the northeast.

The stock of the NBFC firm declined 5.47 per cent to Rs 263.60 on the BSE. During the day, it tumbled 7.88 per cent to Rs 256.85.

At the NSE, it went lower by 5.52 per cent to Rs 263.45.

The company's market valuation declined by Rs 1,884.18 crore to Rs 32,568.57 crore.

In a filing to the BSE on Tuesday, the company said we hereby inform you that during the end of the 4th quarter of the financial year ended March 31, 2024, a fraud was detected at one of the company's branches in the northeast.

"In respect of retail vehicle loans disbursed by the company, the fraud involved forgery of KYC documents, leading to embezzlement of company funds. The investigations in the matter are at an advanced stage.

"The company estimates that the financial impact of this fraud is unlikely to exceed Rs 150 crore. Investigations are underway, and necessary corrective actions have been identified and are at various stages of implementation, including the arrest of few persons involved," according to the filing.

following the development, the agenda matters pertaining to approval of the audited standalone and consolidated financial results of the company for the fourth quarter and financial year ended March 31, 2024, recommendation of dividend, AGM and related matters, which were to be considered at the Board meeting scheduled to be held on April 23, 2024, are being deferred to a later date, which shall be intimated in due course, it added.

In traded volume terms, 12.34 lakh shares of the company were traded at the BSE and over 265.15 lakh shares at the NSE during the day.