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Magma Fincorp plans Rs 6,000 cr disbursals in asset finance in FY18

I am confident that FY18 would be a good year," says Magma president and CEO Kaushik Banerjee

Press Trust of India  |  Hyderabad 

Magma Fincorp plans Rs 6,000 cr disbursals in asset finance in FY18

The Kolkata-based non-banking financial company, Magma Fincorp, has plans to disburse Rs 6,000 crore this fiscal in the asset finance business category, a senior company official said today.

"In the asset finance category our disbursal in FY17 was Rs 4,700 crore and this year we would like to see a growth of 25 per cent over last year. I am confident that would be a good year," (Asset Finance) president and CEO told reporters here.

"We are planning nearly Rs 6,000 crore disbursals...We would like to look at that number (Rs 6,000 crore)...However, there are external factors. Our growth rate will be on two major things - and monsoon," he said.

He further said the gross NPA (non-performing asset) improved to 6.7 per cent in March 2017 from 8.1 per cent in March 2016. "We expect to see a significant improvement going forward in this fiscal," Banerjee said.

"Our focus for is portfolio improvement and consolidation. When I talk about 25 per cent growth in disbursals, that is conditional to our significant improvement in portfolio," he said.

"If we see that the market situation is not conducive for 25 per cent growth and it will impact portfolio quality, we would rather focus on the portfolio and may be aim for a slightly lower disbursement target. We want to de-risk the portfolio," he explained.

To a query on any plans to raise capital, Banerjee said, "Right now, our capital adequacy is quite good and there are no immediate plans to raise capital."

"Our overall book size is Rs 16,500 crore and out of it the asset finance business is Rs 11,700 crore for FY17," he said.

Magma currently has 300 branches spread across the country. There are plans to open 30 more branches in the current fiscal in Gujarat, Maharashtra and Tamil Nadu, Banerjee said.

The company has 22 branches in Andhra Pradesh and Telangana.

The company offers SME loans, construction equipment loans, commercial vehicle loans, used vehicle loans, car loans as well as housing finance loans.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, July 12 2017. 17:04 IST