BENGALURU (Reuters) - Mahindra and Mahindra Financial Services said on Friday it expects repossession activity of vehicles to reduce temporarily a day after the country's central bank directed the company to stop using third-party services for loan recovery.

The company said it now expects the number of repossessed vehicles to temporarily go down by about 3,000 to 4,000 vehicles per month, from the 4,000 to 5,000 it repossesses in the normal course of business.

The company said it has not outsourced any collection activities in its vehicle finance business to any third-party agencies and does not expect any impact on collections in this business.

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Savio D'Souza)