Mahindra Finance India will invest Rs. 1.6 billion to launch its financial services arm in Sri Lanka. This will be in partnership with Ideal Finance Limited (IFL) in Sri Lanka.
Chairman Ideal Group, Nalin Welgama said that Mahindra Finance India has also obtained Reserve Bank of India (RBI) approval for this project. “Back in Sri Lanka, IFL has obtained the approval of the Central Bank and has also completed other formalities in this regard,” he said.
Welgama said that they will re brand Ideal Finance Limited as Mahindra Ideal Finance Ltd. “We hope to commence operations in September 2019 and also hope to expand our current branch network from 14 to 20.”
Mahindra Finance is the only Non-Banking Financial Company from India to be listed on Dow Jones Sustainability Index in Emerging Market Category. “Initially Mahindra Finance will invest Rs. 700 million and then pump in a further Rs. 900 million next year”.
Mahindra Finance began as a captive financier of Mahindra Utility Vehicles in the early 90s.
From Mahindra UVs to tractors to non-Mahindra products, the company has diversified into a financial services provider with a whole suite of financial solutions tailored to the under-served customer in under-penetrated rural markets.
Welgama said that next year they also plan to list Mahindra Ideal Finance Ltd on the Colombo stock Exchange.
IFL is a registered Finance Company coming under the aegis of the Central Bank of Sri Lanka.
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