Ranchi, 16th June, 2010: Magma Fincorp Limited today announced its growth plans for Jharkhand and Bihar. Magma, a leading asset finance company of the country, said that the company will shortly introduce Suvidha Loan - Refinance for User Commercial Vehicles in the state. Suvidha Loans - that offers loans on all makes of used commercial vehicles, with most attractive interest rates and tailor-made schemes. Simple documentation and quick turnaround time will ensure convenience of prospective customers. Under the captive Suvidha programme Magma would be offering loans to the existing customers.

Magma will also disburse Rs 450 crores in retail loans in Jharkhand & Bihar in FY11. The company has deep penetration in the state with 10 branches. The company will also open two branches, in Purnea and Motihari.

Mr. Ranjan Bhakat, Zonal Sales Manager, Magma Fincorp Limited said, "By penetrating deeper in the two States, we will focus on providing asset finance to the economically disenfranchised in the state. We expect to grow our business in Jharkhand & Bihar by over 40% in this financial year. The additional business will also result in increase in manpower", he added.

Commercial Vehicles finance, Tractor finance have been the major growth drivers this year for Magma in Jharkhand & Bihar. While the company has already grown the Commercial vehicle business by about 8%, Tractor Finance business grew a staggering 169% - thus emphasizing on the companies focus on rural markets and it's motto of bringing equality of opportunity to the economically disenfranchised. SME Business, which is operational only in Jharkhand, saw a growth of 94%.

The 10 branch offices of Magma in the two states are in Ranchi, Jamshedpur, Dhanbad, Bokaro, Hazaribag, Patna, Muzaffarpur, Bhagalpur, Sasaram & Jhumri Telaiya. Magma employs over 280 people in the two states.

About Magma Fincorp Limited

Magma Fincorp Limited ("Magma") is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company.

Magma provides a bouquet of financial products including financing of Utility Vehicles & Cars, Commercial Vehicles, Construction Equipments, Tractors and SME Loans. Magma has a dedicated base of over 2.5 lac customers and has assets of approximately INR 9500 crores under management. The company has 153 branches in 20 states and 1 union territory and employs over 4600 people.

Magma has recently signed a joint venture with HDI Gerling, part of Talanx Group, Germany's third largest insurance group to start a general insurance company in India. The new company will be head quartered in Kolkata.