Magma Fincorp is expecting the non-performing assets to reduce to about Rs 200 crore in the second half of financial year 2019, said Sanjay Chamria, vice chairman and managing director of the company, adding that the NPAs have been coming down since the last four quarters.
The company reported stable earnings. Disbursements grew 30 percent year-on-year, while net interest margins (NIMs) expanded. The asset quality remained unchanged.
The quarter-on-quarter gross NPAs came in at Rs 1,452 crore versus Rs 1,422 and net NPAs came in at Rs 621 crore versus Rs 626 crore.
Chamria said the company has sufficient liquidity in the balance sheet to meet short-term liabilities. Traditionally, the company has relied on bank source of funding, he said, adding that about 25 percent of its overall book is securitised where there is door-to-door matching of repayments along with inflows.
Disbursals were normal in October and are expected to be good in November as well because of Diwali, said Chamria. “We are well-placed in terms of doing fresh business and meeting our liabilities,” he said.
Expect a 30 percent disbursement growth and 15 percent AUM growth in FY19 as guided, said Chamria.
The loan growth is also expected to pick up from the third quarter of FY19, he said.