interest rate hike, commercial vehicle market slows down: Magma MD

By Staff
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Google Oneindia News

Kolkata, Jul 2(UNI) Commercial vehicles market has been slowing down in the last few months due to the rising interest rate, Magma Leasing Limited Managing Director Sanjay Chamria said.

Mr Chamria said there has been a general slowdown in the commercial vehicles market following the hike in interest rates in the last few months by several banks.

Magma Shrachi Finance Limited(MSFL), a Non-Banking Finance Company, has control of 45 per cent of the total commercial vehicle financing market.

When asked whether the rising interest rates have affected the margin of profit, Magma Shrachi Finance Limited CFO Anjan Mitra said, ''It has not affected our margin as it has been passed to the customers.'' Magma Leasing Limited Managing Director Sanjay Chamria said the company is also planning to roll out some new products linked with the manufacturing sector.

Meanwhile, Mr Chamria said MSFL, a Non-Banking Finance Company, would tap the south and western Indian market with its construction equipement finance and fee based non-life insurance and loan products.

The company has diversified product portfolio comprising commercial vehicle finance, car&utility vehicle finance, construction equipment finance etc.

The total assets managed by MSFL is around Rs 5742 crore in the 2006-07, a growth of 72 per cent over last year. In 2005-06, MSFL's Asset Under Management(AUM) was Rs 3334 crore.

''In the first quarter of 2007-08, we have disbursed Rs 730 crore, registering a growth of 67 per cent,'' Mr Chamria said.

The Capital Adequacy Ratio(CAR) of the company was 19.6 per cent compared to 17.5 per cent in the previous year.

UNI

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