Expect AUM to grow more than 10 percent in next financial year: Magma Fincorp
Magma Fincorp is expecting its assets under management (AUM) to grow at a rate of more than 10 percent in the next financial year, said Sanjay Chamria, Vice Chairman & MD of the company.
Magma Fincorp is expecting its assets under management (AUM) to grow at a rate of more than 10 percent in the next financial year, said Sanjay Chamria, Vice Chairman & MD of the company.
“We believe that from first quarter of next year, despite the stopping the business of non-focus products, the growth in the focus product itself will be sufficient for us to grow our AUM and we are looking to grow our AUM by more than 10 percent in next financial year," said Chamria in an interview with CNBC-TV18.
Magma Fincorp reported weak Q3 earnings. Its net interest margins have risen but asset quality has deteriorated quite significantly this quarter.
“As a part of our strategy to improve our earnings profile, we decided to discontinue the funding of new cars and new trucks and the new construction equipment and classified these as non-focus products and therefore in the focus products our disbursals have grown on Year-on-Year (YoY) basis between the third quarter last year and this year," Chamria said.
On NIMs, he said, “Our NIMs have started improving, in terms of near-normal, we have a guidance of our NIMs in fact crossing even 9.50 percent once we are completely dwindled down our non-focus products.”
On restructuring, Chamria said, “In terms of restructuring, we are at about 1.9 percent and this has largely happened in the self-employed informal segment customer that we largely cater to. The guidance that we had earlier given was about 3 percent; now we expect that it could be about 4.5-5 percent by the end of March 2021.”
(Edited by : Niral Sharma)
First Published: Feb 8, 2021 2:46 PM IST
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