Non-banking financial company (NBFC) Magma Fincorp today approved merger of its wholly-owned subsidiary Magma ITL Finance with itself. The board also approved raising of up to Rs 750 crore through issue of securities in one or more tranches. Magma ITL, also an NBFC, currently carries out the business of tractor financing. The merger will help achieve greater integration and financial strength and flexibility to maximise overall shareholder value, Magma Fincorp said. The merger will result in economies of scale, reduction in overheads including administrative, managerial and other expenditure, organisational efficiency and optimal utilisation of resources, it added.
Magma Fincorp Q2 net profit rises 8.5% to Rs 49 crore. Magma Fincorp on Thursday posted an 8.5% q-o-q rise in net profit to Rs 49 crore in July-September. The firm’s net interest margin stood at a ‘healthy’ 8.4% in the three months ended September on the back of third consecutive quarter reduction in absolute net NPAs, and in cost of borrowings, a Magma Fincorp release said. The firm made non-performing assets provision of `75 crore in the reporting quarter as against Rs 91 crore in April-June.