Money & Banking

Magma Fincorp Limited changes name to Poonawalla Fincorp Limited

Our Bureau Pune | Updated on July 23, 2021

To expand product range and focus on consumer, MSME segment

Magma Fincorp Limited, an RBI-registered Non-Banking Finance Company (NBFC), has been rechristened as Poonawalla Fincorp Limited and has initiated rebranding activity, following the acquisition of controlling stake by Adar Poonawalla-led Rising Sun Holdings Private Limited on May 21 this year.

Along with this, its fully-owned housing finance subsidiary Magma Housing Finance Limited is also renamed as Poonawalla Housing Finance Limited.

A press statement issued by Poonawalla Fincorp said that in its new avatar under the Poonawalla brand, the group will be focusing on the consumer and MSME segment. As a part of the new strategy, the company will expand its product range to include personal loans, loans to professionals, merchant cash advance, loan against property, consumer finance, and machinery loans along with existing products of business loans, pre-owned car loans, and home loans.

Co-branded credit card

Earlier this month, the board had approved a proposal to enter a co-branded credit card arrangement for issuance of co-branded credit card, subject to obtaining necessary approvals from the regulatory authorities.

Adar Poonawalla, Chairman, Poonawalla Fincorp Limited, said in the statement, “This marks the beginning of not only a change of brand but the fundamental way in which we will do business. From new products to new geographic locations across India; we hope to serve every citizen, helping them in fulfilling their personal and professional aspirations.”

Poonawalla Fincorp Limited started operations nearly three decades back and is listed on the BSE Limited and the National Stock Exchange in India. Consequent to the capital raise of ₹3,456 crore in May, the company is now part of Poonawalla Group with a majority stake owned by Rising Sun Holdings Private Limited, a company owned and controlled by Adar Poonawalla.

The company is present across 21 States with 297 branches and the customer base stands at approximately 5.4 million with a loan book of more than ₹14,000 crore. Poonawalla Fincorp offers a bouquet of financial products including SME finance, mortgage finance, unsecured loans, and general insurance.

Published on July 23, 2021

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