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Magma gears up for high-speed disbursals

Calcutta, Nov. 2: Magma Leasing Limited expects to meet a disbursement target of Rs 800 crore in the current financial year.

The company, which is into car, truck and construction equipment financing, had disbursed Rs 357 crore till September 30, 47 per cent of which was in commercial vehicles followed by construction equipment and cars, comprising 26 per cent and 25 per cent, respectively.

Company managing director Sanjay Chamria said in the first half of this financial year, the disbursement figure was Rs 357 crore against a target of Rs 360 crore, registering a 53 per cent rise over the corresponding period last year.

He said, in 2002-03, the disbursement figure was Rs 509 crore, adding that it was expected to increase by 60 per cent in 2003-04.

The company has posted a net profit of Rs 4.01 crore in the second quarter ended September 30, 2003, against Rs 2.22 crore in the corresponding previous quarter.

In April-September, Magma’s post-tax profit stood at Rs 11.30 crore compared with Rs 4.20 crore in the same period last year, registering a growth of 169 per cent.

Chamria said magma would concentrate in financing car, commercial vehicles and construction equipment.

The company has decided to exit from two-wheeler and consumer durable financing businesses.

Chamria also said the company wanted to make its presence felt at the national level, for which it was opening up centres in the southern part of the country.

Magma, which has operations in the eastern and northern parts, plans to venture into western India after consolidating its existing business. The company will also gradually penetrate in the rural and semi-urban areas.

Chamria said truck financing was a major revenue-earner for the company. “We have recently started truck financing business in Andhra Pradesh and Rajasthan,” he added.

Regarding fixed deposits, he said the company would pay up all liabilities, adding that the company would not accept any deposits from the public in future.

He said the non-performing assets of the company stood at 1.33 per cent of the total advances.

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