MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 432 Concentration of Credit Risk Financial services business’s loan portfolio is predominantly to finance retail automobile and housing loans. The financial services business manages concentration of risk primarily by geographical region in India. The following table shows the geographical concentrations of financial loans as at year end: Rupees crores Particulars 2024 2023 Carrying Value ............................................................................................................................................................................................................................. 1,10,023.89 90,104.32 Concentration by Geographical region: North .................................................................................................................................................................................................................................................. 34,299.31 26,094.99 East ..................................................................................................................................................................................................................................................... 21,138.69 18,071.95 West .................................................................................................................................................................................................................................................... 31,845.58 26,391.41 South ................................................................................................................................................................................................................................................. 22,740.31 19,545.97 Total Loans .................................................................................................................................................................................................................................. 1,10,023.89 90,104.32 Maximum Exposure to credit Risk The maximum exposure to credit risk of loans is their carrying amount. The maximum exposure is before considering the effect of mitigation through collateral. Narrative Description of Collateral Collateral primarily include vehicles purchased by retail loan customers, residential property in case of housing loan and machinery & property in case of SME customers. The financial investments are secured by way of a first ranking pari-passu and charge created by way of hypothecation on the receivables of the other company. Gross value of total secured loans to value of collateral Rupees crores Loan To Value (LTV) Gross value of secured loans 2024 2023 Upto 50% coverage........................................................................................................................................................................................................... 10,946.95 9,352.30 51 - 70% coverage............................................................................................................................................................................................................ 17,045.80 14,674.75 71 - 100% coverage......................................................................................................................................................................................................... 59,262.76 46,848.22 Above 100% coverage.................................................................................................................................................................................................... 17,630.35 14,292.60 1,04,885.86 85,167.87 Quantitative Information of Collateral - Credit Impaired assets (Collateral Coverage - Value of collateral available to mitigate the credit exposure) Rupees crores Loan To Value (LTV) Gross Value of loans in stage 3 2024 2023 Upto 50% coverage........................................................................................................................................................................................................... 410.73 392.78 51 - 70% coverage............................................................................................................................................................................................................ 388.23 413.39 71 - 100% coverage......................................................................................................................................................................................................... 570.70 387.39 Above 100% coverage.................................................................................................................................................................................................... 2,777.08 3,300.36 4,146.74 4,493.92 40. Financial instruments (Continued)
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