Mumbai-based NBFC, Magma Fincorp Limited, has announced a series of leadership changes following the Poonawala-controlled Rising Sun Holdings acquiring controlling stake through an equity infusion of Rs3,456cr in May 2021.
The Board, on Monday, appointed Adar Poonawalla as the Chairman of the company. The company has also appointed Abhay Bhutada as the Managing Director. Vijay Deshwal, a seasoned banker with a track record of over two decades, will take charge as CEO at Magma Fincorp from the first week of July. He will also be the Group CEO of Poonawalla Group’s financial services business.
The company said, these changes reflect the company's transition into the next phase of growth and the ongoing commitment to achieving the highest standards of corporate governance. The balance sheet has been strengthened significantly through the equity infusion, with the Tier1 capital adequacy ratio standing at 66.8%, and leverage at 1.3 times as on May 15, 2021.
The company has improved operating performance during FY21 and reported increase in NIMs, reduction in operating expense ratios, reduction in cost of funds. Disbursals have been lower resulting in lower AUM. The Company has exited FY21 with a very strong Balance Sheet and with further capital infusion of Rs. 3,456 Crore, is adequately capitalised to usher in a period of growth and superior risk-return ratios and RoA and RoE.
Magma Fincorp introduced 100% provisions and wrote off all accounts in the 90+ DPD (Days Past Due) bucket in the SME lending business, 180+ DPD bucket in the Vehicle Finance Business and 730+ DPD bucket in the Affordable Housing Finance Business. It also made significant provisions for the Covid second wave applying management overlay, with no lingering impact in FY22.
Magma Fincorp Ltd trade on Tuesday ended at Rs143.05 per piece up by Rs6.8 or 4.99% from its previous closing of Rs136.25 on the BSE.