Magma renames itself, sees 43 percent loan disbursal growth this fiscal

Kolkata, Aug 13 : Financial services company Magma Shrachi Finance Limited expects 43 percent growth in loan disbursals in the current fiscal, a top company official said here Wednesday.

"Keeping in line with loan disbursals in the first quarter, we expect to grow at 43 percent during the current fiscal," Sanjay Chamria, the company's vice chairman and managing director, told the media here.

He was meeting the media to announce that Magma Shrachi Finance Limited has been renamed as Magma FinCorp Limited.

The company at present has a total asset base of USD 2 billion (Rs.80 billion) and has 200 branches spread across 21 states in India.

"Close to 70 percent of our branches are in rural and semi-urban areas," Chamria said.

The company provides finance for commercial vehicles, construction equipment - both retail and strategic, cars and convenience loans to people who are financially weak.

"Our car and commercial vehicle financing grew by 70 percent in 2007-08 and 60 percent in the first quarter of the current year," he said.

Chamria claims the company has a market share of 6 percent in commercial vehicle financing and 2.9 percent in passenger car financing.

In the last two months, 95 percent of its lending has gone towards small and medium enterprises, he said.