Mahindra Finance appoints Mahesh Rajaraman as CRO

Mahindra & Mahindra Financial Services has announced the appointment of Mahesh Rajaraman as Chief Risk Officer (CRO) effective August 1, 2024, following the resignation of current CRO Mallika Mittal, who will officially leave the company on November 16, 2024. In the interim, Gaurav Verma, Head of Underwriting & Product Policy, will oversee the risk management functions. Rajaraman brings 29 years of banking experience, having previously served as Head of Credit at City Union Bank and held roles at Yes Bank, HDFC Bank, HSBC Bank, and ANZ Grindlays Bank. His expertise spans retail assets, credit cards, agri lending, and SMEs, focusing on policy/risk, underwriting, fraud risk management, and anti-money laundering. \r

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The leadership change follows the detection of significant fraud at Mahindra Finance's Aizawl branch, involving 2,887 potentially fraudulent loan accounts with a net recoverable balance of Rs 135.9 crore, fully provided for by the company. This fraud, related to retail vehicle loans, involved extensive collusion among company employees, vehicle dealers, and bank employees, with forged KYC and asset-related documents. Meanwhile, Mahindra Finance's shares were trading at Rs 263.80, down 0.21% on the BSE.