NBFC Magma Fincorp eyes 25% growth in disbursements

MUMBAI: Non-banking financial company (NBFC) Magma Fincorp is targeting disbursements of Rs 5,500 crore in the current fiscal, up 25 per cent from last year.

"We aim to grow our disbursements this fiscal by 25 per cent and have set a target of Rs 5,500 crore," Magma Fincorp Vice-Chairman and Managing Director Sanjay Chamria told PTI here.

The Kolkata-based firm provides a host of products, including financing of utility vehicles and cars, commercial vehicles, tractors and SME loans.

Its disbursement last fiscal stood at Rs 4,559-crore. Segment-wise, the NBFC is targeting a 35 per cent growth in disbursements in the commercial vehicle segment, 7-8 per cent in tractor and 24 per cent in the construction equipment segment. Disbursements to SMEs, utility vehicles and cars will comprise the balance, he said.

"Our major focus this fiscal will be in states such as Orissa, Bihar and Andhra Pradesh. Our aim is to provide services to the have-nots, where banking services are not available for them," Chamria said, adding going forward, Magma will continue to open more branches in rural areas.

At present, Magma has over 5-lakh customers with 160 branches pan-India.

Asked whether Magma is eyeing an entry into banking, Chamria said "let's see what is happening. We have put our views to the Reserve Bank in this regard."