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Press Coverage
Magma awaits IRDA nod to start General Insurance biz
The Financial Express, 24 October 2009, Kolkata
Kolkata based non banking financial corporation Magma Fincorp Ltd has got necessary approvals from the Reserve Bank of India for its proposed general insurance venture jointly with HDI-Gerling International Holding AG of Germany. "Now we are waiting for IRDA approvals, which normally takes four to six month's time", said Sanjay Chamria, Vice Chairman and Managing Director of the company. The venture will have an initial investment of Rs 110 crore. He said that with market conditions improving after April, Magma's net profit touched Rs 14.5 crore in the quarter, compared to Rs 11 crore in the corresponding period last fiscal. Disbursement during the second quarter has increased to Rs. 892 crore from Rs 876 crore in the corresponding period last fiscal. Net Interest Margin in high yielding products like tractor, SME and used commercial vehicle loan is 5% while other core products had a NIM of 4%, Chamria said.
Magma gets RBI nod for General Insurance
DNA, 24 October 2009, Kolkata
Magma Fincorp, a non-banking finance company, has received the go ahead from Reserve Bank of India for setting up its general insurance business in India. The company has also applied for R1, which includes the initial license from the Insurance Regulatory & Development Authority. The company intends to start operations through a 74:26 joint venture with German Insurance company HDI Gerling by the middle of next year with an initial equity of Rs 110 crore. "We have grown our disbursals by 21% over the first quarter of the year," said Mr. Sanjay Chamria, Vice Chairman and Managing Director of the company. Disbursals stood at Rs. 892 crore in Q 2, against Rs 876 crore in the corresponding quarter of the previous year. Maximum growth came from the commercial vehicle segment, with the category registering a growth of 30%. The company posted 29% growth in net profit for the quarter ended September 30, 2009 at Rs 14.58 crore. The company is likely to raise over Rs. 2000 crore of debts from banks, through debentures and securitized paper this fiscal.
Magma awaits IRDA nod to start General Insurance
Yahoo Finance, 24 October 2009, Online
Kolkata - based non banking financial corporation Magma Fincorp Ltd has got necessary approvals from the Reserve Bank of India for is proposed general insurance venture jointly with HDI-Gerling International Holding AG of Germany. "Now we are waiting for IRDA approvals, which normally takes four to six month's time", said Sanjay Chamria, Vice Chairman and Managing Director of the company. The venture will have an initial investment of Rs 110 crore. He said that with market conditions improving after April, Magma's net profit touched Rs 14.5 crore in the quarter, compared to Rs 11 crore in the corresponding period last fiscal. Disbursement during the second quarter has increased to Rs. 892 crore from Rs 876 crore in the corresponding period last fiscal. Net Interest Margin in high yielding products like tractor, SME and used commercial vehicle loan is 5% while other core products had a NIM of 4%, Chamria said. High yielding products earn Magma an interest of 18.5% - 21% while other products earn 13.5% - 14% rate of interest. Magma saw the highest growth from commercial vehicle financing. The company has written off bad debts worth Rs 6.22 crore during the quarter against Rs 4.3 crore for the corresponding period last fiscal.
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