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Riding on the back of higher disbursements in commercial vehicle and used assets businesses, Magma Fincorp posted a 74 per cent growth in net profit at ₹68 crore for the quarter ended June 30, 2018, compared to ₹39 crore in the same period last year.
Disbursements grew by 25 per cent at ₹1,840 crore during the period under review, up from ₹1,473 crore in the corresponding period last year.
“Asset backed finance (ABF) disbursement recorded 23 per cent growth on year-on-year basis, primarily driven by growth in commercial vehicle finance business, which grew at 139 per cent, and the used assets finance business witnessed a growth of 27 per cent,” said a press statement issued by Magma.
The net interest margin moved up by 100 basis points to 8.6 per cent aided by lower cost of funds and higher earning assets, the release said.
The company has transitioned to IndAS accounting during the quarter. Its net non-performing assets stood at 4.4 per cent, an improvement from the level of 7 per cent in the corresponding quarter of last year.
Magma has also increased provisioning on standard assets under IndAS to 2.65 per cent as on June 30, 2018, from the earlier mandated 0.40 per cent.
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