Magma Fincorp sees 43 pct loan growth in FY09 - MD

KOLKATA, Aug 13 (Reuters) - Rural non-banking lender Magma Fincorp Ltd, earlier known as Magma Shrachi Finance (MAGM.BO: Quote, Profile, Research), expects loans to rise 43 percent in FY09 on better disbursement to construction equipment and passenger cars sectors, a top official said on Wednesday.

The firm changed its name as a re-branding exercise, Vice Chairman & Managing Director Sanjay Chamria said at a news conference.

In FY08, the company financed 35 billion rupees to buyers of commercial vehicles, construction equipment, tractors, passenger cars and used cars.

"Construction equipment, tractors and cars will make up bulk of loans in the year," Chamria said.

Commercial vehicles make up 44 percent of the loan portfolio, while construction equipment and passenger cars make up 26 percent and 25 percent, he said.

Finance to used cars and loans to small businesses make up rest of the loan portfolio of the non-banking finance firm that operates mainly in the rural areas.

It has a capital adequacy ratio of over 15 percent against central bank's norm of 12 percent for the sector, he said.

Shares in the firm provisionally closed up 3.6 percent at 320 rupees in the Mumbai market. (Reporting by Tamajit Pain; Editing by Harish Nambiar)