Magma Fincorp, a leading asset finance company with its headquarters in Kolkata, will focus on rural and semi-urban markets to expand its pan-India presence, according to Dhrubashish Bhattacharya, Vice-President. Addressing presspersons here on Thursday, he said though the industry was going through a challenging phase, the company could post a healthy growth in 2012-13 with a compounded annual growth rate (CAGR) of 27 per cent in disbursements while the assets under management went up by 30 per cent.
In the current financial year, the company had taken a cautious approach and would focus on providing asset finance to the economically disenfranchised segment, Mr. Bhattacharya said. With favourable monsoons, he was hopeful of a further improvement in disbursements in the current financial year.
Zero interest schemes
Asked for his comments on the Reserve Bank of India instructing banks to stop offering zero interest EMI (equated monthly instalment) schemes, Mr. Bhattacharya said this would impact those financing the purchase of consumer durables such as white goods, electrical or electronic products. The company, as such, was not offering zero interest EMI schemes, he said.
Magma Fincorp recently diversified into three new business divisions and launched gold loans in select markets.
He said there was good potential for growth in Tamil Nadu. The company disbursed Rs. 321 crore in the State in 2012-13, and the plan was to maintain this growth rate with focus on retail markets and SME (small and medium enterprises) segment.
The company is operating through 8 branches in Tamil Nadu at strategic locations.