Expect improvement in gross NPAs in FY18: Magma Fincorp.

Magma Fincorp has sold Rs 679 crore of non-performing assets (NPAs) on a consolidated basis.

This Rs 679 crore worth NPA comprises of Rs 577 cr vehicle loans and Rs 101 crore mortgage loans. The gross NPAs (GNPA) for the March quarter would now be around 6.9 percent.

With this sale, Kailash Baheti of Magma Fincorp expects improvement in provision coverage ratio.  The credit cost is also expected to decline to around 1.5 percent, he says.

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