Magma Fincorp


Magma Fincorp Limited is a Kolkata based non-banking financial company registered with the Reserve Bank of India as an Asset Finance Company. The company operates more than 310 branches in 22 states and a union territory and has a strong presence in rural and semi-rural India.

History

Magma Fincorp Limited was incorporated in 1988 by Mr. Mayank Poddar. Magma commenced operation in 1989. In 1996, Magma entered retail financing business for vehicles and construction equipment. In the year 2000, with the Acquisition of Consortium Finance Ltd, Magma expanded its network across Northern India. In 2007, Shrachi Infrastructure Finance merged with Magma increasing the company's footprint in southern and western India. In the same year, the company formed a joint venture with International Tractors Limited to enter tractor financing business. In 2008, Magma re-branded and renamed itself as Magma Fincorp Limited. In 2009, Magma inked a joint venture with German insurer HDI Global to enter general insurance business. The company has received its R1 license in April 2011. In the same year, Magma picked up 7% stake in the newly formed Experian Credit Information Company of India Pvt Ltd, the Indian arm of the global credit information services company. In 2011, Kohlberg Kravis Roberts – a large global PE firm and International Finance Corporation, an arm of the World Bank Group invested about $100 mn in Magma. In 2012, Magma acquired GE Money Housing Finance and GE Money Financial Services. In 2016 Mr. Mayank Poddar stepped down as the chairman and was succeeded by Mr. Narayan K Seshadri as the new chairman.

Products/services

Magma Fincorp Limited has a "diversified product portfolio" and has a strong presence in semi-urban and rural areas. Magma's financial products include:
In Feb 2013, the company acquired 100% equity share capital of GE Money Housing Finance engaged in Housing Finance in India and the home equity loan portfolio of GE Money in two separate transactions.
Following the acquisitions, GE Money Housing Finance has been renamed as Magma Housing Finance Company. This acquisition marked the entry of Magma into the mortgage finance business. Magma Housing Finance Co commenced fresh disbursement in May 2013 and started offering financing products under 3 broad product lines viz. Home Loans, Home Equity & Construction Finance.

Magma Fincorp Auto Lease

Provides financing facility to small, medium and large businesses in need of fleet of cars
Serves over 140 large & medium company's fleets across 14 states in India.

Magma HDI General Insurance Co Ltd

Magma HDI General Insurance Co Ltd. is a joint venture between Magma Fincorp Limited and HDI-Gerling Industrie Versicherung AG. HDI Gerling is part of Talanx Group, the third largest insurance group in Germany.
Mumbai-based asset finance company, Magma Fincorp Limited announced the Q3FY19 results, posting a robust growth in profits driven by higher disbursements, lower NPAs and stable net interest margins. Profit after tax for the quarter grew at an impressive 65% YoY, despite sharp increase in cost of funds due to the prevailing uncertainty in the financial services industry. NIMs remained healthy at 8.4%. Assets under management increased 6% YoY to Rs 16,507 Crore as on 31 December 2018. The profit after tax for nine months ended 31st December 2018 stood at Rs. 219 Crore, up 39%. Magma reported substantial improvement in its portfolio quality with the Gross NPAs reducing to 6.3% in the current quarter compared to 9.5% in the previous quarter.

New investments

Health & Well-being
• M-Care Health camps including basic test across several states in the country. Have treated around 15000 plus patients till date
• Free cataract surgery for 200 rural masses in a village in West Bengal
Environment Sustainability
• Highway Heroes- Magma Truckers Well-being Initiative for Environment Sustainability. In association with PCRA, Govt. of India undertaking
• Training Safer Driving Skills to Truck Drivers in 250 location. Estimated 175,000 truckers benefited in 250 camps
• Better Mileage + Fuel Conservation = Saving about 2 crore Lt. of Diesel per year
• Reduction in CO2 Emission estimated 790 Lac kg.
• E-Toilets for Sanitation at Transport Nagars to benefit to approx. 60,000 Truck drivers
Promotion of Education
• M Scholar - Total strength of students enrolled under the scheme is 300. 29% of them are pursuing Engineering / Medical course.
• Adoption of 16 Schools in Tribal areas in CG, Jharkhand
• Mid-day Meal Programmed: Offering mid-day meal to 7000 students in Govt. Schools in Kolkata, Delhi, Mumbai, Saraikela,
Nellore, Faridabad, Jaipur – through Annamrita Foundation
Swayam - Corporate Volunteering
• Every Child is Special: Providing toys and other pre school kits for the under privileged kids of Mewat area in Alwar Dist.
• Supporting Free Student Hostel for the tribal kids to have easy access to school, shelter, food, clothing and other life values
• Renovation of Mid Day meal kitchen room in Chandigarh for the preparation of healthy food