Jabalpur, 24th August, 2011: Magma Fincorp Limited today announced its ambitious growth plans for Madhya Pradesh for the financial year 2012. The company, which disbursed Rs 327 crores in Madhya Pradesh in FY 11, plans to romp up disbursements by another 50% in retail loans in the state in FY12. Magma, headquartered in Kolkata, already has a footprint in the state with its 8 offices.

Mr Ravi Mathur, Zonal Sales Manager, Magma Fincorp Limited said, "We will continue with our focus on providing asset finance to the economically disenfranchised in Madhya Pradesh and expect to further grow our business in the state. We are opening 5 new branches in Madhya Pradesh, this fiscal to reach out to a larger audience. 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."

Magma has 8 branch offices in Madhya Pradesh in Jabalpur, Indore, Ujjain, Satna, Shahdol, Bhopal, Guna & Narsinghpur and employs about 300 people in the state. Five new branch offices will be opened in Gwalior, Chhindwara, Sagar, Mandsaur & Khargone during the current financial year.

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 327 crores in FY11, which was 59% higher than FY10. Suvidha, Tractor Finance, SME Loan, Car Finance & Commercial Vehicle Finance posted a healthy growth of 394%, 194%, 84%, 45% & 39% respectively. All these products will be Magma's key growth drivers in the state. 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 this region. Company's focus on rural markets also emphasises it's motto of bringing equality of opportunity to the economically disenfranchised.

In the first quarter of the current financial year, the company has already experienced an overall growth of 59% in Madhya Pradesh, compared to the corresponding period of the last financial year. Suvidha, Tractor Finance, Commercial Vehicle Finance, SME Loan & Car Finance witnessed a growth of 632%, 86%, 64%, 63% & 54% respectively.

"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 markets", added Mr Mathur. He also said that the company, apart from consolidating its position for its core products like Car, Commercial Vehicle & Construction Equipment loans in the market, will also focus to grow the high yield products - Suvidha, Tractor & SME Finance - which will contribute significantly to the company's business.

The rating agency CARE has recently upgraded the ratings of Magma Fincorp Limited for all its debt obligations. Magma has an established and impeccable track-record towards timely payment of all its debt Obligations. The revised ratings are as under:

Rating for Bank facilities - upgraded from CARE AA to CARE AA+
Rating for Subordinated Debt - upgraded from CARE AA- to CARE AA
Rating for Perpetual Debt Instrument - upgraded from CARE A+ to CARE AA-
Rating for Secured Long Term Debt - upgraded from CARE AA to CARE AA+

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 around 2.5 lac customers and has assets of INR 11030 crores under management. The company has 172 branches in 20 states and 1 union territory and employs over 5050 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.