Magma to open 29 new branches,eyes 50% growth in disbursements

Magma to open 29 new branches,eyes 50% growth in disbursements

Bangalore: Magma Fincorp Limited plans to open 29 new branches in the country and is looking at 50% growth in loan disbursement target in the current financial year, a top company official said today.

Magma, a non-deposit taking non-banking finance company, currently has 171 branches and with the new additions, mostly in the West and South regions, to come up in the first half of 2011-12, their number would go up to 200, its Vice-President Dhrubashish Bhattacharya told reporters here.

In Karnataka, it’s opening two new branches at Sindhanoor in Raichur district and Gulbarga, he said.

Bhattacharya said the Kolkata-headquartered company logged total disbursements of 5,415 crore in 2010-11, up 33% from the previous fiscal, adding, it’s targetting a 50% growth in this number in the current fiscal.

Magma provides a bouquet of financial products, including financing of utility vehicles and cars, commercial vehicles, construction equipment, tractor and SME loans.

Bhattacharya said the contribution of high-yield products -- used commercial vehicles, tractors and SME loans -- which currently stands at 19% of total business, is aimed to be boosted to 24% in the current fiscal.

“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", he said.

In May, Magma announced an investment of 440 crore led by funds managed by Kohlberg Kravis Roberts & Co LP along with International Finance Corporation to support the company’s growth plans in existing businesses in addition to newer areas.