Kochi, 10th October, 2010: Magma Fincorp Limited today announced its growth plans for Kerala. Magma, a leading asset financing company in the country, will disburse Rs 175 crores in retail loans in Kerala in 2010-11. The company, headquartered in Kolkata, already has deep penetration in the state with 6 offices, with each of the offices covering a radius of 125 Km, to help achieve its ambitious business goal.

Mr Dhrubashish Bhattacharya, Vice President, Magma Fincorp Limited said, "Our focus is to penetrate deeper in the rural and semi urban markets and provide asset finance to the economically disenfranchised in the state. We expect to grow our business in the state by approximately 25% in the current financial year. There would be a considerable increase in our manpower requirements as well. Our target is to consolidate our market share in the state, which has a lot of business potential for our business".

In the first half of 2010 - 11, all the three products have seen considerable growth in Kerala with Car, Construction Equipment and Commercial Vehicle business already registering 77%, 62% and 60% growth respectively, over the corresponding period of the last financial year. With aggressive marketing strategy in place, the company is on a major market expansion drive in South India. Company's focus on rural markets also emphasizes it's motto of bringing equality of opportunity to the economically disenfranchised.

Magma has presence in 6 cities in Kerala including branch offices in Kochi, Trivundrum, Calicut, Kottayam, Trissur & Malappuram and employs over 100 people in the state.

"Magma has taken an aggressive stance on its overall growth plans this year and we will promote all our products across Kerala", added Mr Bhattacharya.

The half yearly performance of the company showed strong growth with disbursals growing 34% to record at Rs 2186 crore. PAT was up by 65% to Rs 44.5 crore. The H1 NIM has also improved to 5.4% compared to 5.1% 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 2.35 lac customers and has assets of approximately INR 9865 crores under management. The company has 170 branches in 20 states and 1 union territory and employs about 4800 people.