Mumbai-based non-banking finance company (NBFC), Magma Fincorp Limited's board on May 31 appointed Adar Poonawalla as the chairman of the company.
Also, the company has announced a series of leadership changes following the Poonawalla-controlled Rising Sun Holdings acquiring controlling stake through an equity infusion of Rs 3,456 crore in May 2021.
Abhay Bhutada has taken over as the managing director while Vijay Deshwal, a seasoned banker with a track record of over two decades, will take charge as CEO at Magma Fincorp from the first week of July. He will also be the Group CEO of Poonawalla Group’s financial services business, the company said.
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.
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, the company said.
The balance sheet has been strengthened significantly through the equity infusion, with the Tier1 capital adequacy ratio standing at 66.8 percent, and leverage at 1.3 times as on May 15, 2021.
The company has created capital buffers and opted for aggressive write-off policies in line with a bank structure, it said.
More appointments on the cards
“The company is going to augment the leadership team with the appointment of highly qualified and experienced professionals from reputed financial institutions for various senior management positions, set to join by Q2 FY22,” it said.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, the statement said.