Chandigarh, 5th July, 2010: Magma Fincorp Limited today announced its growth plans for Punjab and Haryana. Magma, a leading asset financing company in the country, will disburse Rs 532 crores in retail loans in Punjab & Haryana in 2010-11. The company already has deep penetration in these two states with 16 branches and will add two more branches in Pathankot and Khanna to help to achieve the ambitious business goal.

Mr. Sanjeev Chandhok, Regional Sales Manager, Magma Fincorp Limited said, "By penetrating deeper, we will focus on providing asset finance to the economically disenfranchised in the state. We expect to grow our business in the state by over 50% in this new financial year. There would be a considerable increase in our manpower requirements. Our target is to sustain the high market share in the state".

Construction Equipment Finance and Tractor Finance have been the major growth drivers this year for Magma in Punjab & Haryana. While the company has already grown the Tractor Finance business by over 29%, Construction Equipment Finance business grew by 30% - thus emphasizing on the company's focus on rural markets and it's motto of bringing equality of opportunity to the economically disenfranchised. SME Loan witnessed a growth of 80% in Punjab whereas Car Finance grew by 24% in Haryana.

Magma has 11 branch offices in Punjab in Chandigarh, Ludhiana, Jullandhar, Moga, Sangrur, Patiala, Baddi, Bhatinda, Sirsa, Shimla and Mandi (the last two being in Himachal but part of Magma's Punjab region) and 5 branch offices in Haryana in Karnal, Ambala, Rohtak, Yamuna Nagar & Hissar and employs over 500 people.

"Magma will aggressively promote all its products with special focus on Construction Equipment, Tractor & Suvidha finance across Punjab and Haryana", added Mr Chandhok.

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 2.29 lac customers and has assets of approximately INR 9500 crores under management. The company has 155 branches in 20 states and 1 union territory and employs about 4600 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.