Slow Down of Tractor Finance by Magma Fincorp in North Karnataka
Magma Fincorp is very cautious in lending the tractor finance. We are very selective in certain markets, and have exited those areas, which are drought-prone, added Dhrubashish Bhattacharya, Magma Fincorp Business Head.
Sectors like used segment (new and used cars, commercial vehicles) and tractor finance are the growth drivers for the company.
Company have scaled down their tractor lending finance and moved to the other markets to South Karnataka, where there are irrigation facilities. Our tractor finance business has gone down in Davangere, Hubballi-Dharwad, Sindanur, Raichur and Kalaburagi, he added.
For Magma, the tractor finance accounts for 18.7% business pan-India of Rs 18,521 crore book size as on December 31, 2015. In Karnataka, close to Rs 45.12 crore (total disbursement of Rs 690 crore in FY2015) accounts for tractor finance.