Financial services provider, Mahindra & Mahindra Financial Services is expecting to achieve a 45% growth in net profits this fiscal owing to growing demand for loans in the commercial and pre-owned vehicles and construction equipment segment, informed top officials of the bank.

"We will grow at 40-45 per cent. The higher growth rate would come from commercial equipment, construction equipment and second hand vehicles," managing director Ramesh Iyer said.

Iyer said that these three segments are expected to contribute 15-20% of the balance sheet of the company which primarily lends its focus in rural and semi urban segments.

"We have become a significant player for Maruti," Iyer added. The company does not see any impact on its cost of borrowing from banks and financial institutions owing to the expected 25 basis points rise in policy rates in the second quarter monetary policy review scheduled today.

"If it goes up, we will pass it on to customers, but we have a strategy that any rate hike of 25-50 basis points, we will try to absorb it."

The company has also applied for a license to operate as an Asset Management Company and it expects the approval to come by this fiscal. We have one million customers and we are growing every month with 25,000-30,000 customers being added. We don't want to miss the opportunity to take financial product to this market."