Kolkata, 23 October, 2009: The second quarter results of Magma Fincorp Limited, which were announced today, reflect an increase in disbursement revenue and profits, over the corresponding period last year. The disbursements increased marginally to Rs 892 crore from Rs 875 crores while revenue increased 15.5% to Rs 177.03 crore. The company recorded Profit before Tax (PBT) of Rs 24.00 crore and Profit after Tax (PAT) of Rs 15.75 crore, an increase of 39% over the corresponding period last year.

Magma, which has been one of the few financiers to have continued to do business as usual during the global meltdown, has been steadily increasing the disbursals. The company registered positive performance in all products with disbursements higher by 21% over the first quarter of the current fiscal. This has helped the company increase market share in each product. Magma during the quarter increased share of the newer high yield products such as Tractor Loans, SME Loans and Suvidha Loans in the business by approx 5% resulting in an improvement in the net interest margins (NIM) from an average 3.6% in the past to over 5% in the last two quarters.

Magma has been able to deal with the economic slowdown through a series of initiatives including strengthening it's robust collection mechanism, introduction of additional business verticals and a strong focus on asset quality. The company also during the second quarter signed a joint venture agreement with HDI Gerling, part of the Talanx Group, third largest insurer in Germany to form Magma HDI General Insurance Company Limited, the first private joint venture insurance company to be head-quartered in eastern India. The new insurance company since has applied to the Insurance regulator IRDA for necessary licenses to commence operations.

Commenting on the company's performance, Mr Sanjay Chamria, Vice Chairman and Managing Director, Magma Fincorp Limited said, "The market conditions have improved considerably in the second quarter. While primary sale of Car and Construction Equipment are already on an upswing, the sales in commercial vehicles too has seen positive growth in September. We at Magma have been able to take advantage and have grown our disbursals by 21% over the first quarter of this year, showing steady increase in business. We successfully increased share of our newer high yield products to achieve higher net interest margins. Our strong presence in the up-country locations too have been instrumental in our improved performance as the rural demands have been strong despite below par monsoon this year. A major highlight of our performance in the H1 of the current fiscal is our collections performance which has not only improved over the corresponding period last year, is among the best in the industry today.

"We will continue to focus on ramping up our retail asset financing business. With the economy showing signs of recovery and positive outlook on industrial and retail sectors growth and stable interest rates, the company is confident of a steady growth in the ensuing quarters." added Mr Chamria.

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 2.25 lac customers and has assets of approximately INR 10,000 crores under management. The company has 150 branches in 20 states and 1 union territory and employs over 4300 people. Magma enjoys rating of AAA (SO) and AA from CRISIL and CARE respectively for various instruments.