Magma Fincorp to sell non-performing assets up to Rs 600 crore

Asset finance company Magma Fincorp on Monday said it has approved the sale of non-performing assets (NPAs) of the company up to Rs 600 crore in one or more tranches.

"This is to inform you that the management committee of the board of directors of the company at its meeting held On February 27, 2017 has approved sale of non-performing assets of the company in one or more tranches from time to time, up to a maximum total amount of Rs 600 crore," the company said in a BSE filing.

The management committee was authorised to take the decision on the proposed NPA sale.

Company's profitability and asset quality was adversely impacted during the third quarter of the current fiscal due to the demonetisation.

The company had said repayment of loans in rural areas was severely impacted due to cash crunch situation prevailed during most of November and December, and that led to a sharp rise in NPAs.