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| Magma Fincorp to raise Rs 2,000 cr in 6 months |
| BS Reporter / Kolkata Nov 03, 2009, 00:39 IST |
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Magma Fincorp is planning to raise Rs 2,000 crore through debt instruments in the next six months.
The company would raise the funds through bank loans, debentures, bonds and securatised papers, said
Sanjay Chamria, vice chairman and managing director, Magma Fincorp on the sidelines of a press conference here today.
The company today posted 39 per cent rise in net profit for the quarter ended September 2009 at Rs 15.75 crore, against 11.28 crore in the same period last financial year on a consolidated basis.
The profit was driven by increased disbursals in high-yielding segments like tractor, small and medium enterprises and used commercial vehicles, said Chamria.
“Due to increased yields in the high-yield segments,we were able to maintain net interest margin (NIM) of more than five per cent in the quarter, against an average of 3.6-3.8 per cent last year,” he said.
The contribution of the three segments increased from eight per cent last year to about 13 per cent in the quarter under consideration.
“Even in the four core segments, our NIM was about four per cent, and so we have been able to reduce the cost of funds. We want to increase the contribution from the three high-yielding segments to 15 per cent by the end of the financial year,” said Chamria.
The yields in the high-yield segments varied between 18-21 per cent, against about 14 per cent in the core segments.
In the second quarter the company disbursed Rs 892 crore, against Rs 876 crore in the same period last financial year, showing a marginal increase of about one per cent. Over the Q1 of 2009, the disbursals increased by 21 per cent.
The company recently signed a joint venture agreement with HDI Gerling, part of the Talanx Group, to form Magma HDI General Insurance Company Limited. The new insurance company has applied to the Insurance regulator IRDA for necessary licenses to commence operations, and is expected to be functional by the first half of the next financial year.
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