Durgapur, 5th August, 2010: Magma Fincorp Limited today announced its growth plans for West Bengal. Magma, a leading asset financing company in the country, will disburse Rs 447 crores in retail loans in West Bengal in 2010-11. The company, headquartered in Kolkata, already has deep penetration in the state with 8 offices.

Mr. Timir Ghoshal, Zonal Sales Head, Magma Fincorp Limited said, "By penetrating deeper, we will focus on providing asset finance to the economically disenfranchised in the state. We expect to grow our business in the state by over 35% in this new financial year. There would be a considerable increase in our manpower requirements. Our target is to sustain the high market share in the state".

In the first quarter of 2010 - 11, all the products have seen considerable growth in West Bengal with Tractor Finance leading from the front with a growth of 802% and Suvidha registering a growth of 56% over the corresponding period of the last financial year. With aggressive marketing strategy in place, the company is on the right growth track. Company's focus on rural markets also emphasises it's motto of bringing equality of opportunity to the economically disenfranchised.

Magma has 8 offices in West Bengal in Kolkata, Asansol, Berhampur, Durgapur, Kharagpur, Malda & Siliguri. Magma is also present in Gangtok, which falls under its West Bengal operations. Magma employs about 400 people in the state.

"Magma is very bullish on its growth plans this year and will aggressively promote all its products with special focus on Construction Equipment, Commercial Vehicle, Strategic Construction Equipment & Suvidha finance across West Bengal", added Mr Ghoshal.

Magma posted impressive first quarter results for 2010 - 11 with disbursements increasing by 42% to record 1047 crore for the quarter. The total income revenue increased by 23% to Rs 179.4 crores. The company also recorded its highest ever Net Interest Margin (NIM) of 5.7% for the quarter which helped in registering Profit before Tax (PBT) of Rs 27.7 crore and Profit after Tax (PAT) of Rs 18.2 crore, an increase of 63% and 61% respectively over the corresponding period last year.

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. The Company, having started operations over two decades back, is listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India.

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 2.31 lac customers and has assets of approximately INR 9500 crores under management. The company has 166branches in 20 states and 1 union territory and employs about 4700 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.