Magma Fincorp to securitise 45% of 2010-11 loans

Magma Fincorp, non-banking finance company (NBFC) funding equipment and small and medium enterprises, plans to securitize an asset portfolio of about Rs 2,500 crore for the current financial year. This is about 45 per cent of the loans it had made in 2010-11. Earlier in the year, it had done securitization for about Rs 1,800 crore.
The company disbursed loans worth Rs 3,460 crore in April- December 2010. Much of the business was booked in the fourth quarter and total origination (loans) in the current financial year was expected to be about Rs 5,500 crore. Magma plans to reduce dependence on securitisation over time. It was 75 per cent till 2007-08 and around 50 per cent cent last year. The aim is to bring it below 30 per cent.