Kolkata-based asset-backed finance company Magma Fincorp is seeing “improvement” in its non-performing assets position, a top official of the company said.
“The measures we have been taking, such as mapping portfolio behaviour and deployment of advanced predictive tools, have led to the improvement,” Kaushik Banerjee, President and CEO – Asset Finance, Magma Fincorp, told newspersons here on Wednesday.
The NBFC sold NPAs worth ₹678 crore during the last fiscal. “Now that the balance sheet is clean, we are not expecting any repeat of the NPA sale this year,” he said. Magma Fincorp’s gross NPAs stood at 6.7 per cent in FY17 against 8.1 per cent in the previous year. Most of the existing NPAs are only seven to eight months old and the collection efficiency is “good”, Banerjee added.
The company is also trimming its tractor portfolio, which accounts for 27 per cent of the total outstanding portfolio of ₹16,500 crore. This is part of its efforts to cap the exposure to different portfolios at 20 per cent. On the expected net interest margin (NIM) for the current financial year, he said it could be on the same lines of the 7.5 per cent reported in the previous fiscal.
The Magma Fincorp scrip gained 3.9 per cent to close at ₹168.85 on the BSE on Wednesday.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.