Magma Fincorp Ltd on Monday announced a series of leadership changes, including appointment of Adar Poonawalla as the chairman of the company.
The non-banking finance company's (NBFC's) board also appointed Abhay Bhutada as its managing director. The new appointments come following Poonawalla-led Rising Sun Holdings' acquisition of controlling stake in Magma Fincorp through an equity infusion of Rs 3,456 crore earlier this month.
Poonawalla is also the chief executive officer of Pune-based Serum Institute of India, the world's largest vaccine manufacturer.
Magma Fincorp also said that Vijay Deshwal, a seasoned banker with a track record of over two decades, will take charge as the company's CEO from the first week of July. He will also be the Group CEO of Poonawalla Group's financial services business.
"Deshwal is currently a business head at ICICI Bank, responsible for its fast growing services sector, including new age businesses. He is also responsible for driving the liability strategy for the corporate ecosystem at the bank," the company said in a release.
Having handled pan-India financial institutions, including NBFCs for over six years, Deshwal has vast understanding of various asset classes and the cyclicality of these businesses. He had previously headed debt syndication business for ICICI Bank for over five years.
"These changes reflect the company's transition into the next phase of growth and the ongoing commitment to achieving the highest standards of corporate governance," it added.
As the second wave of COVID-19 is subsiding, the new management is expected to drive business acceleration. The rebranding of the company as a Poonawalla Group firm is underway. The company's cost of funds is expected to fall in line with the industry best, along with resultant improvement in credit rating and progress towards resilience under the Poonawalla brand, Magama Fincorp said.
The company reported a net loss of Rs 559 crore in financial year 2020-21, while for January-March quarter, the net loss stood at Rs 648 crore.
"The company has exited FY21 with a very strong balance sheet and with further capital infusion of Rs 3,456 crore, is adequately capitalised to usher in a period of growth and superior risk-return ratios and RoA and RoE," it said.
Magma Fincorp is a systemically important non-deposit taking NBFC. Along with its subsidiaries and joint ventures, it offers a bouquet of financial products, including commercial finance, agri finance, SME finance, mortgage finance and general insurance with focus on the rural and semi-urban sectors. It has a customer base of 5.4 million and manages a loan book of Rs 14,225 crore.
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