Non-banking finance company Magma Fincorp today said it aims to lend Rs 10,000 crore in current fiscal, up 50% from what it advanced last fiscal, especially to tractors, car and SME segments.
"We are targeting 50% growth in lending this fiscal and we expect to lend Rs 10,000 crore to various sectors across the country," company's zonal sales head Sanjiv Jha told reporters here today.
Magma last fiscal lent to the tune of Rs 5,415 crore, he said.
Apart from this, the Kolkata-based NBFC is eyeing assets under management to grow to Rs 15,000 crore on the back of growing lending business. It has assets under management of Rs 10,907 crore at present.
Magma is lending car loans at 12-15% rate of interest while old vehicle loans at 17-20%. It charges 18-20% interest rate on financing tractors loans, he said.
"The primary sales of assets have witnessed robust growth in the past several quarters and we hope the same would continue. This augurs well for our business.
With the development of infrastructure further, we hope our products will continue to do well as majority of them cater to the growth in rural and semi urban markets," Jha added.
He also said the company, apart from consolidating its position for its core products like car, commercial vehicle and construction loans in the market, will also focus to grow the higher yield products such as Suvidha, Tractor and SME Loans, which will contribute significantly in the company's business.
While maintaining net interest margin of 5%, it garnered profit after tax of Rs 100 crore last fiscal.
It has also plans to open 29 offices across the country to boost its lending business. Currently it has 171 branches in 20 states with customer base of 2.36 lakh customers.