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Kolkata-based Magma Fincorp Ltd will shift its focus away from the business of providing loan against property. The non-banking finance company will focus on the affordable housing segment instead to grow its home loan business.
According to Manish Jaiswal, Managing Director and CEO, Magma Housing Finance, while loan against property, which is mainly targeted at the SME segment, is a high yielding business, it is also more risky.
Its total housing loan book, which includes loan against property also, is close to ₹2,972 crore.
“At present the share of home loan is close to 30 per cent while loan against property is 70 per cent of this total business. We intend to reverse this mix in the near future,” Jaiswal said.
During the current fiscal, Magma’s focus would be on bringing down cost of funds and managing asset quality even if that comes on the back of a lower growth in business.
“Growth is secondary to the quality of portfolio and profitability,” said Kaushik Banerjee, President and CEO, Asset Finance, Magma.
Q1 net dipsMagma posted seven per cent drop in revenue on a standalone basis to ₹470 crore during the quarter ended June 30, 2017. Net profit came down marginally to ₹39 crore (against ₹40 crore in the corresponding quarter of the previous year).
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