38.6c New Delhi, India, Saturday, August 02, 2025
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Business

Adar Poonawalla Appointed as Chairman of Magma Fincorp

By Pariyal Gupta      02 June, 2021 04:30 PM      0 Comments
Adar Poonawalla Appointed as Chairman of Magma Fincorp

Adar Poonawalla on Monday (May 31, 2021) took over as chairman of Magma Fincorp, a Mumbai-based non-banking financial company. The appointment follows the acquisition of controlling stakes in Magma through an equity fusion of Rs 3,456 crores in May 2021 by Rising Sun Holdings.

Poonawalla is also the CEO of Pune- based Serum Institute of India, the worlds largest vaccine manufacturer. 

With 60% shares owned by Rising Sun Holdings, Magma Fincorp is now a part of the Poonawala Group. The rebranding of the company as a Poonawalla Group Firm is underway. 

The company has also appointed Abhay Bhutada as the Managing Director and Vijay Deshwal as the CEO of Magma Fincorp from July 2021. Deshwal, a professional banker with a two-decade track record will also be the group CEO of Poonawalla Groups financial service businesses.

We are confident that Vijay Deshwal, with his extensive experience and knowledge across various facets of banking and financial services, will drive the transformation and charter a new phase of growth for the amalgamated entity under the brand of Poonwalla, Abhay Bhutada, Managing Director, Magma Fincorp, said in a statement.

Having handled pan-Indian financial institutions including NBFCs for over 6 years, Mr. Deshwal has a wide understanding of various asset classes and the cyclicity of these businesses. He had previously headed debt syndication business for ICICI Bank for over five years, the company release added.

Magma Fincorp is a financial conglomerate offering a variety of financial products such as commercial finance, Agri finance, SME finance, mortgage finance, and general insurance. The company is focused on the rural and semi-urban sectors with widespread coverage and presence across 21 states and 298 branches. Magmas customer base has crossed 5 Billion and manages a loan book of over Rs.15,000 crore. 

Covid has impacted the company and their loss before tax for the financial year of 2021 stood at Rs.749 crore. The company expects some recoveries from written-off contracts through legal actions taken against defaulting customers which would flow into their income in subsequent quarters. The management is confident that with provisions buffers and stringent write-off policies, it is adequately prepared to deal with the potential impact of the ongoing second wave of Covid in the financial year 2022. 

In an investor presentation, the company stated that the equity fusion has significantly strengthened their balance sheet with the capital adequacy ratio increasing to 66.8% and with leverage standing at 1.3 times as of May 15, 2021. The changes will reflect the companys transition into the next phase of growth and the ongoing commitment to achieve the highest standard of corporate governance. 

As the second wave of Covid seems to be subsiding, the new management is expected to drive business acceleration We have outlined core strategic pillars of Magma 2.0, laying out a clear and focused direction for the company. Magma 2.0 would be a professionally run organization under a new leadership team fully supported by the existing leadership, capitalize benefits from a large capital base, and stronger parentage. There would be early recognition and tackling of asset quality challenges with accelerated write-offs and buffer provisioning, robust ALM profile, risk management technology, and data analytics, Abhay Bhutada said.



Share this article:



Leave a feedback about this
TRENDING NEWS

sc-to-first-consider-maintainability-of-review-against-2022-judgment-on-eds-powers-under-pmla
Trending Judiciary
SC to first consider maintainability of review against 2022 judgment on ED's powers under PMLA

SC to first decide if review pleas on ED powers under PMLA are maintainable; hearing on Karti Chidambaram’s plea set for August 6.

01 August, 2025 10:58 AM
sc-recalls-may-2-judgment-scrapping-jsw-steels-resolution-plan-for-bhushan-power-and-steel-ltd
Trending Business
SC recalls May 2 judgment scrapping JSW Steel's resolution plan for Bhushan Power and Steel Ltd

SC recalls its May 2 verdict cancelling JSW Steel’s ₹19,300 Cr resolution plan for Bhushan Power; matter to be heard afresh on August 7.

01 August, 2025 11:13 AM

TOP STORIES

sc-questions-justice-varma-over-failure-to-challenge-validity-of-in-house-inquiry-panel
Trending Judiciary
SC questions Justice Varma over failure to challenge validity of in-house inquiry panel

SC questions Justice Varma for not challenging in-house probe panel earlier despite cash haul case; asks why he joined inquiry if he found it flawed.

28 July, 2025 02:27 PM
timelines-for-governor-prez-to-clear-bills-kerala-asks-sc-to-return-presidential-reference-unanswered
Trending Executive
Timelines for Governor, Prez to clear Bills: Kerala asks SC to return presidential reference "unanswered"

Kerala urges SC to return Presidential reference on bill clearance timelines as “unmaintainable”, citing suppression of facts and settled SC rulings under Article 200.

28 July, 2025 02:38 PM
sc-refuses-to-stay-publication-of-draft-voters-list-in-bihar-on-aug-1
Trending Judiciary
SC refuses to stay publication of draft voters list in Bihar on Aug 1

SC declines stay on Bihar draft voter list; asks EC to consider Aadhaar, Voter ID for inclusion ahead of Assembly polls on August 1.

28 July, 2025 04:10 PM
why-so-many-students-dying-by-suicides-sc-asks-iit-kharagpur
Trending Judiciary
Why so many students dying by suicides, SC asks IIT Kharagpur

SC asks IIT Kharagpur why students are dying by suicide; raises concern amid rising campus deaths despite new mental health guidelines.

29 July, 2025 11:51 AM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email