The Hindu : Business : Magma Fincorp to expand operations

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Tuesday, Jun 21, 2011
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Magma Fincorp to expand operations

Corporate Reporter

CHENNAI: Magma Fincorp, a non-banking finance company (NBFC) engaged in providing finance for utility vehicles and cars, commercial vehicles, construction equipment, tractors and small and medium enterprises, will be expanding its branch network with focus on the South.

Addressing presspersons, Dhrubashish Bhattacharya, Vice-President, said the company achieved a total volume of business of Rs. 5,262 crore (standalone) and achieved a net profit of Rs. 114 crore. It earned a net interest margin of 5 per cent despite tight business conditions, Mr. Bhattacharya said.

Detailing its plans in Tamil Nadu, Mr. Bhattacharya said, the company, which had presence in seven cities in Tamil Nadu, has disbursed Rs. 177 crore and planned to gear up disbursements by another 50 per cent in retail loans in 2011-12. The branch network will go up to 200 by the end of this year with the opening of 29 branches.

The volume of business will increase by Rs. 1,000 crore in the current accounting period with the expansion of branch network to take the total branches to 200 by the end of this year. The company plans to add 15 branches in the west, five in south, five in east, and fourth in north.

Magma Fincorp has signed a joint venture with HDI Gerling, part of Talax group, Germany's third largest insurance group to start a general insurance company in India, which since has received R1 licence from the Insurance Regulatory and Development Authority (IRDA).

The company has infused capital to the extent of Rs. 440 crore with the contribution of funds by Kohlberg Kravis Robert & Company along with International Finance Corporation to support the company's plans.

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