Non-bank lender Magma Fincorp Ltd on Monday named Serum Institute of India chief executive Adar Poonawalla as its chairman and made a few other appointments.
His appointment comes as part of a deal signed in February in which Poonawalla-owned Rising Sun Holdings acquired a controlling stake in Magma Fincorp for Rs 3,456 crore.
The Mumbai-based non-banking financial company also appointed Abhay Bhutada, managing director and chief executive of Poonawalla Finance, as its managing director, and Vijay Deshwal, a business head at ICICI Bank, as its chief executive.
Moreover, Magma Fincorp will soon be rebranded as Poonawalla Group company.
The firm said its balance sheet strengthened after the equity infusion from Rising Sun, with the Tier-I capital adequacy ratio at 66.8% and leverage at 1.3x as of May 15.
“The company is going to augment the leadership team with the appointment of highly qualified and experienced professionals from reputed financial institutions for various senior management positions, set to join by the second quarter of 2021-22,” Magma Fincorp said.
The company said it improved its operating performance during 2021 and reported an increase in net interest margins and a decrease in operating expense ratios.
Founded in 1988 in Kolkata, Magma Fincorp (formerly known as Magma Shrachi Finance Ltd) is engaged in the business of providing loans. It operates as Magma Group from Mumbai, facilitating financing for tractors, commercial vehicles, construction equipment, cars and used vehicles, and mortgage loans to micro, small and medium enterprises.
Magma Fincorp’s customer base stood at 5.4 million. The lender manages a loan book of Rs 14,225 crore.
It is backed by private equity firms True North, ChrysCapital, LeapFrog Investments, Netherlands Development Finance and World Bank’s International Finance Corporation (IFC).