Patna, 18 February, 2010: Magma Fincorp Limited today announced its growth plans for Bihar. Magma, a leading asset financing company in the country, expects to close the current fiscal with loans disbursement of Rs 120 crores in Bihar, about 35% higher than Rs 88 crore it disbursed last financial year in the state. This was announced by Mr Sanjay Chamria, Vice Chairman & MD of Magma Fincorp. He informed that the company has already disbursed about Rs 95 crores between April 08 and January 2010 and expects to close the year on a new high. "Our target is to become a leading player in asset finance in Bihar within the next couple of years", added Mr Chamria.
Magma offers finance for new and used Commercial Vehicle, Passenger Cars and Utility Vehicles, Construction Equipment, Tractors etc. The company also provides SME Finance apart from Insurance facilities, thereby providing single window facility to the customers.
Commercial Vehicles loans and Tractors Loans have been the major growth drivers this year for Magma in Bihar. While the company has already grown the Commercial Vehicle Loans business by 38%, Tractor Finance has grown by a staggering 294% - both emphasizing the companies focus on rural markets and motto bringing equality of opportunity to the economically disenfranchised. Magma has 4 branch offices in Bihar in Patna, Muzaffarpur, Sasaram and Bhagalpur and employs about 100 people in the state.
Speaking to the media in Patna media for the first time, Mr Sanjay Chamria added that Bihar has demonstrated an incredible growth story for the company. This has been possible because of the economic recovery, steady demand in the market and strong performance by the team. "We are encouraged by the response we have received from our customers and we will continue to facilitate empowerment of our customers in emerging markets like Bihar through our products. Our growth strategy in Bihar is aligned to the company's overall growth vision to become the largest retail financing player in the country", he added.
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 2.0 lac customers and has assets of approximately INR 9390 crores under management. The company has 152 branches in 20 states and 1 union territory and employs about 4400 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. The new insurance company since has obtained Reserve Bank of India approval and is currently awaiting the Insurance regulator IRDA approval for commencement of operations.