Chennai, 20th June, 2011: Magma Fincorp Limited today announced its ambitious growth plans for Tamil Nadu for the financial year 2012. The company, which disbursed Rs 177 crores in the state in FY 11, plans to romp up disbursements by another 50% in retail loans in Tamil Nadu in FY12. Magma, headquartered in Kolkata, already has a footprint in the state with its 8 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 177 crores in FY11, which was 100% higher than FY10. Car, Commercial Vehicle & Construction Equipment finance posted a healthy growth of 158%, 74% & 73% respectively. The Tractor finance and Suvidha (Refinance) verticals introduced last year also witnessed a phenomenal growth of 1284% & 209% respectively. 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 7 cities Of Tamil Nadu including branch offices in Chennai (2), Madurai, Coimbatore, Salem, Pondichery, Vellore & Trichy and employs about 150 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 markets", 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 significantly, 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.