Magma Fincorp plans expansion

Magma Fincorp plans expansion

Magma, a non-deposit taking non-banking finance company, currently has 171 branches and with the new additions, mostly in the West and South regions, to come up in the first half of 2011-12, their number would go up to 200, Vice President Dhrubashish Bhattacharya said.

In Karnataka, its opening two new branches at Sindhanoor in Raichur district and Gulbarga. The company logged total disbursements of Rs 5,415 crore in 2010-11, up 33 per cent from the previous fiscal. Its targeting 50 per cent growth in the current fiscal.

Bhattacharya said contribution of high-yield products — used commercial vehicles, tractors and SME loans — which currently stands at 19 per cent of total business, is aimed to be boosted to 24 per cent in the current fiscal.

In May, Magma announced an investment of Rs 440 crore led by funds managed by Kohlberg Kravis Roberts & Co LP along with International Finance Corporation to support its growth plans.  Bhattacharya said “We will continue with our focus on providing asset finance to economically disenfranchised, which will help in strengthening our market share.”

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