Adar Poonawalla joins Magma Fincorp as chairman

The Poonawala Group on Monday announced a new management structure for Magma Fincorp which it had taken over for Rs 3456 crore appointing a new chairman managing director and a chief executiveThe Adar Poonawallacontrolled Rising Sun Holdings the financial services arm of the group known globally for its vaccines had completed the acquisition of the citybased nonbank lender earlier this monthThe board of Magma appointed Adar Poonawalla as the Chairman while Abhay Bhutada who is the Chief Executive of the Poonawala Finance will be the Managing Director Vijay Deshwal a seasoned banker with a track record of over two decades will take over as the Chief Executive of Magma Fincorp from July according to a statementSanjay Chamria will continue as the Vice Chairman of the company and will guide the new team during the transition the company saidDeshwal currently a business head at ICICI Bank responsible for its services sector including newage businesses and driving the liability strategy for the corporate ecosystem will also be the Group Chief Executive Officer of Poonawalla Groups financial services businessAlso ReadBombay HC seeks Maha govts reply on plea seeking Zplus security for SII CEOThe changes reflect Magmas transition into the next phase of growth and the ongoing commitment to achieving better corporate governance standards the statement saidWith the acquisition the balance sheet of the NBFC has been strengthened significantly through the equity infusion with the tier1 capital adequacy ratio standing at 668 per cent and leverage at 13 times as of May 15It also said there will be more hands in the leadership team by the second quarter and that the rebranding of Magma a Poonawalla Group firm is also underwayMagma has improved its operating performance in the financial year 202021 and reported an increase in NIMs reduction in operating expense ratios and cost of fundsA higher writeoff led the company to report an Rs 86358 crore net loss on a standalone basis in the March quarter as against Rs 1736 crore profit in the December 2020 quarter and Rs 411 crore a year ago For the full year to March 2021 its losses amounted to Rs 74876 crore as against a net income of Rs 8178 crore in the financial year 201920The company attributed the heavy loss to the onetime incremental writeoff of Rs 274 crore and an overlay provision of Rs 621 crore aggregating to a onetime credit loss of Rs 895 crore for the yearDisbursals have been lower resulting in a lower AUM to Rs 14225 crore But with a capital infusion of Rs 3456 crore Magma is adequately capitalised to usher in a period of growth and superior riskreturn ratios and RoA and RoE it saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever