Magma Fincorp sees 30% loan growth, NIM improvement in FY14
   
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Magma Fincorp sees 30% loan growth, NIM improvement in FY14

Last Updated: Thursday, May 9, 2013, 17:28
 
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Magma Fincorp sees 30% loan growth, NIM improvement in FY14
Mumbai: Non-banking finance company Magma Fincorp today said it hopes to grow its loan book by around 30 percent in the ongoing financial year and improve its net interest margin (NIM).

"We hope to grow our loan book by around 30 percent this fiscal year. As far as NIM is concerned, we aim to increase its further this year," vice-chairman and managing director Sanjay Chamria told reporters here.

The company had reported a NIM of 4.91 percent in the last fiscal compared to 3.40 percent a year earlier.

Chamria also said the NBFC would like to have NIM in the 5.5-6 percent range going ahead.

Net interest margin is the difference between interest earned on loans and that paid on deposits.

Magma Fincorp, which has started three new lines of businesses namely gold loan, housing finance and general insurance in the last fiscal, is also expecting its general insurance business to be breakeven by FY'15.

"We expect our general insurance business to be breakeven by FY15, which will be third year of its operation," he said.

He also said that its recently acquired housing finance business from GE Money, was likely to contribute around 20-25 percent of its loan book in next 3-4 years.

Referring to plans for applying new banking licence, Chamria said that the company had appointed a consultant to study the feasibility of the proposal, after which it would take a call on this issue.

Magma Fincorp had posted a net profit of Rs 144.9 crore in FY'13 with average assets under management of Rs 18,378 crore by the end of this period.

Shares of Magma Fincorp soared by 8.19 percent to end at Rs 95.15, valuing the company at Rs 1,807 crore on the BSE.

PTI



First Published: Thursday, May 9, 2013, 17:28


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