Allahabad, 28th July, 2010: Magma Fincorp, a leading asset finance company, today said that it is re-launching Suvidha - Used Commercial Vehicle Loans in Uttar Pradesh. Suvidha offers loans on all makes of used commercial vehicles up to 15 years old at the end of tenure, with attractive interest rates. Simple documentation and quick turnaround are two of the specialties of the scheme.

Mr. Saikat Sen, National Sales Head - Suvidha Loans said, "Suvidha is a very useful product for the economically weak truckers who want to earn a living and who have entrepreneurial skill sets. Magma is ready to extend loans against used commercial vehicle at terms the competition is unwilling to offer. We have already put in place a team to serve the needy customers in various parts of the state. We hope to disburse about Rs. 30 crores of Suvidha Loans in Uttar Pradesh in this fiscal.

Magma has 15 branch offices in Uttar Pradesh in Lucknow, Allahabad, Gonda, Mirzapur, Pratapgarh, Farrukhabad, Fatehpur, Kanpur, Haldwani, Lakhimpur Kheri, Rae Bareily, Renukoot, Hardoi, Gorakhpur & Bijnaur and employs around 300 people in the state.

Magma also 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 157 branches 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. 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.