Hyderabad, 23rd May, 2011: Magma Fincorp Limited today announced its ambitious growth plans for Andhra Pradesh for the financial year 2012. the company, which disbursed over Rs 650 crores in the state in FY 11, plans to romp up disbursements by another 50% in retail loans in Andhra Pradesh FY12. Magma, headquartered in Kolkata, already has a footprint in the state, which is equally strong in Coastal and Telengana with its 15 offices.

Mr Dhrubashish Bhattacharya, Vice President, Magma Fincorp Limited said, "We will continue with our focus on providing asset finance to the economically disenfranchised in the state and expect to further grow in the state. This will help in strengthening our market share in each of the segments. For this, we would also increase our manpower strength to suit the challenge of high growth trajectory."

Buoyed by the growth it witnessed across all product categories in the last financial year, Magma has a focused growth plan charted out for the state. The company disbursed Rs 656 crore in FY11, which was 25% higher than FY10. Suvidha (refinance), Tractor and SME loan led from the front with a growth of 181%, 167% & 73% respectively. The Car finance vertical also witnessed a healthy growth of 38%. The aggressive marketing strategy adopted by the company helped in attaining this phenomenal growth rate and played a major part in the market expansion drive for the company in South India. Company's focus on rural markets also emphasises it's motto of bringing equality of opportunity to the economically disenfranchised.

Magma has presence in 15 cities of Andhra Pradesh including branch offices in Hyderabad, Karimnagar, Kurnool, Mehboobnagar, Mancherial, Nalgonda, Nizamabad, Warrangal, Khammam, Nellore, Rajahmundry, Tirupati, Vijayawada, Vishakhapatnam & Cuddapah and employs over 400 people in the state.

"The primary sales of assets have witnessed robust growth in the past several quarters and we hope the same would continue. This augurs well for our business. With the development of infrastructure further, we hope our products will continue to do well as majority of them cater to the growth in rural and semi urban", added Mr Bhattacharya. He also said that the company will also focus to grow the higher yield products such as Suvidha, Tractor and SME Loans by another 100% Atleast, which will contribute significantly in the company's business.

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 2.36 lac customers and has assets of INR 10907 crores under management. The company has 171 branches in 20 states and 1 union territory and employs about 5150 people.

Magma has 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, which since has received R1 license from the insurance regulator.