Mumbai-based asset finance company Magma Fincorp expects to close the outgoing fiscal year with a 20 percent growth in disbursals as it comes out of the liquidity crunch that hit the shadow banking sector after IL&FS went belly up last September. The crisis of confidence in the NBFC sector has left the company, which is also into home loans, general insurance and SME funding, apart from its bread-and-butter vehicle financing, fighting higher credit cost that rose by 40-50 bps since the second quarter to 9.3-9.5 percent, but has since come down to around 20 bps in the March quarter, vice-chairman and managing director Sanjay Chamria said. This also had its impact on disbursals across the industry and Magma wasnt any exception as its asset base slipped marginally because the company could not pass on the entire spike in its funding cost to end consumers. Despite this, in the three months to December 2018, Magma, which is focused on rural and semi-urban markets with ...
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