Lucknow, 11th July, 2011: Magma Fincorp Limited today announced its ambitious growth plans for Uttar Pradesh for the financial year 2012. The company, which disbursed Rs 292 crores in Uttar Pradesh in FY 11, plans to romp up disbursements by another 50% in retail loans in these states in FY12. Magma, headquartered in Kolkata, already has a footprint in the state with its 15 offices.

Mr Sanjiv Jha, Zonal Sales Manager, Magma Fincorp Limited said, "We will continue with our focus on providing asset finance to the economically disenfranchised in Uttar Pradesh and expect to further grow in the states. 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 states. The company disbursed Rs 292 crores in FY11, which was 15% higher than FY10. Tractor, Car & SME finance posted a healthy growth of 221%, 43% & 24% respectively. Suvidha (refinance), which was launched in the last financial year, did an extremely encouraging business. 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.

Magma has 15 branch offices in Uttar Pradesh in Lucknow, Allahabad, Gonda, Mirzapur, Pratapgarh, Farrukhabad, Fatehpur, Kanpur, Bareily, Haldwani, Lakhimpur Kheri, Rae Bareily, Renukoot, Hardoi & Gorakhpur and employs over 330 people in the state. Two new branch offices will be opened in Varanasi & Jhansi during the current financial year.

"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 Jha. He also said that the company, apart from consolidating its position for its core products like Car, Commercial Vehicle & Construction loans in the market, will also focus to grow the higher yield products such as Suvidha, Tractor and SME Loans, 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.