Asset financing company Magma Fincorp Limited has set a target to disburse Rs 175 crore in retail loans in Kerala in 2010-11. The Kolkata-headquartered company already has achieved a deep penetration in the state with six offices, each covering a radius of 125 km.
Dhrubashish Bhattacharya, vice president, Magma Fincorp, told presspersons here today that the companyâs focus would be on penetrating deeper into the rural and semi-urban markets and provide asset finance to the economically disenfranchised in the state.
"We expect to grow our business in the state by approximately 25 per cent in the current financial year. There would be a considerable increase in our manpower requirements as well. Our target is to consolidate our market share in the state, which has a lot of business potential," he said.
In the first half of 2010-11, all three of its products have seen considerable growth in Kerala with car, construction equipment and commercial vehicle businesses registering a growth of 77 per cent, 62 per cent and 60 per cent, respectively, over the corresponding period of the last financial year.
With an aggressive marketing strategy in place, the company is on a major market expansion drive in south India. Magma has presence in six cities in Kerala including branch offices in Kochi, Thiruvananthapuram, Kozhikode, Kottayam, Thrissur and Malappuram and employs over 100 people.
The half yearly performance of the company showed strong growth with disbursals growing 34 per cent to record at Rs 2,186 crore. Its profit after tax was up by 65 per cent to Rs 44.5 crore.
Magma Fincorp is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an asset finance company. The company is also listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India.