Magma eyes 50% growth in disbursements this fiscal

Aiming at a 50% growth, Magma Fincorp today said it plans to romp up disbursements around Rs 8,000 crore nationally this financial year, of which about Rs 375 crore would be in Kerala.

The Kolkata-headquartered non deposit taking NBFC had disbursed Rs 5,414 crore all india last fiscal, Vice President Magma Fincorp, Dhrubasish Bhattacharya, told reporters here.

Magma had disbursed Rs 249 crore in Kerala last fiscal.

"We will continue with our focus on providing asset finance to the economically disenfranchised in Kerala and expect to further grow in the states," he said.

Cars, commercial vehicle and construction equipment finance posted a healthy growth of 114%, 77% and 31% respectively in the state.

Suvidha (Refinance) launched in the first quarter of the current fiscal, had shown impressive performance and would be one of the key drivers in Magma's growth in kerala, he said.

The company has 172 branches nationwide and proposes to open 28 branches this year to touch 200.It has six branches in Kerala and would open one at Kannur by next month, he said.

Asked if increasing petrol prices and rising interest costs was causing concern, he said this was a concern which has an impact on the automobile sector. Magma does not see much of a problem unless it persists for long, he said.