Outcome of Board Meeting - Increase in Borrowing limits
M&MFIN · price
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The Board approved audited standalone and consolidated financial results for Q4 and FY ended March 31, 2025. Standalone profit after tax rose about 33% to Rs. 2,345 crore in FY25 from Rs. 1,760 crore in FY24, on total income of Rs. 16,075 crore vs Rs. 13,562 crore. The Board recommended a dividend of Rs. 6.50 per share (325% on face value of Rs. 2), subject to shareholder approval. The Board also approved raising the aggregate borrowing limit from Rs. 1,30,000 crore to Rs. 1,50,000 crore under Section 180(1)(c), which includes NCD issuance (sub-limit unchanged at Rs. 65,000 crore). Other items include re-appointment of Dr. Rebecca Nugent as Independent Director for a second 5-year term, change of Secretarial Auditor to M/s. Makarand M. Joshi & Co, and elevation of Mr. ShivKumar N V as Chief Business Officer-SME. The 35th AGM is scheduled for July 22, 2025.
Higher borrowing limits and steady loan book growth (loans up to Rs. 1,13,214 crore from Rs. 99,195 crore) point to continued business expansion. Strong 33% profit growth and a healthy dividend are positive for shareholders, though the larger debt headroom means the company may issue more NCDs, which can affect leverage and interest costs going forward.