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Mumbai-based non-banking finance company Magma Fincorp Limited on Monday announced the appointment of Adar Poonawalla as the chairman of the company. Poonawalla is also the chief executive officer of Serum Institute of India, the maker of Oxford University-AstraZeneca Covishield vaccine in India.

The announcement is part of a series of leadership changes following the Poonawala-controlled Rising Sun Holdings (RSH) acquiring controlling stake through an equity infusion of 3,456 crore earlier this month. The Company has also appointed Mr. Abhay Bhutada as the Managing Director.

Magma has appointed Vijay Deshwal to take charge as the CEO at Magma Fincorp from the first week of July. He will also be the Group CEO of Poonawalla Group’s financial services business.

Deshwal, is currently the business head at ICICI bank in charge of new –age business. At ICICI bank, he is responsible for driving the liability strategy for the Bank. “Having handled pan-India financial institutions including NBFCs for over six years, Mr. Deshwal has vast understanding of various asset classes and the cyclicality of these businesses. He had previously headed debt syndication business for ICICI Bank for over five years," the company said in its release.

The appointment of the senior management is the first step in the process of ramping up different managerial positions.

“The Company is going to augment the leadership team with the appointment of highly qualified and experienced professionals from reputed financial institutions for various senior management positions, set to join by Q2 FY22. As the second wave of Covid-19 is subsiding, the new management is expected to drive business acceleration. The rebranding of the Company as a Poonawalla Group firm is underway," the release said.

In February this year, RSH had agreed to pick up 60% stake in Magma for a valuation of 3456 crore. Strong corporate backing and substantial fund infusion is likely to have a positive effect on the credit rating of Magma. The fund infusion will allow the company to invest in Magma’s housing finance unit and general insurance JV.

Magma has reported a loss of 625.9 crore at the end of March compared to loss of 35 crore a year ago. The company has reported total income of Rs.587.14 crores during the period ended March 31, 2021 as compared to Rs.617.62 crores during the period ended March 31, 2020.

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