Allahabad, 20th April, 2010: Magma Fincorp Limited today announced its growth plans for Uttar Pradesh. Magma, a leading asset financing company in the country, will disburse Rs 325 crores in retail loans in the state in 2010-11. The company, which already has deep penetration in the state with 13 branches, will open 3 new branches in Gorakhpur, Bareily and Bijnore to achieve the ambitious business goal.

Mr. Sanjiv Jha, Zonal Sales Manager - North, Magma Fincorp Limited said, "By penetrating deeper in the State, we will focus on providing asset finance to the economically disenfranchised in the state. We expect to grow our business in the state by about 35% in the new financial year. Magma has disbursed over Rs 250 crores In FY 10 which is significantly higher than business done in FY09. There would be a considerable increase in our manpower requirements. Our target is to become a leading player in asset finance in Uttar Pradesh within the next couple of years".

Commercial Vehicles finance, Tractor finance and Construction / Strategic Construction Equipment finance have been the major growth drivers this year for Magma in Uttar Pradesh. While the company has already grown the Commercial Vehicle Loans business by 30%, Construction Equipment / Strategic Construction Equipment Finance has grown by 13% and Tractor Finance by 29% - thus emphasizing on the companies focus on rural markets and it's motto of bringing equality of opportunity to the economically disenfranchised.

Magma has 13 branch offices in Uttar Pradesh in Lucknow, Allahabad, Gonda, Mirzapur, Pratapgarh, Farrukhabad, Fatehpur, Kanpur, Haldwani, Lakhimpur Kheri, Rae Bareily, Renukoot & Hardoi and employs over 300 people in the state.

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.

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 2.5 lac customers and has assets of approximately INR 9390 crores under management. The company has 154 branches in 20 states and 1 union territory and employs over 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.