‘PMAY is the best scheme in last 60 years’

Source: The Hitavada      Date: 24 Dec 2017 11:13:36


By Praveen Vighre,

THOUGH industrialisation and urbanisation in Maharashtra were growing at a medium pace, the business-friendly attitude of the Government would boost growth rate in the near future, predicted Manish Jaiswal, President of Magma Housing Finance and SME Business. An alumni of VNIT, Nagpur, he is in the city to celebrate the Silver Jubilee Reunion of his batch.

Manish Jaiswal, who has also done his Fast Track General Management from IIM, Bangalore, has over 25 years of rich corporate experience and joined Magma after a very successful stint with Crisil, where he was spearheading the businesses of Risk Advisory, Research and SME Ratings. He was involved in Risk Advisory to most of the domestic banks as well as the implementation of Basel III and strengthening the Integrated Risk Management with the leading Indian private as well public sector banks. He was also an eminent member of the Sebi Committee of Corporate Bonds and Securitisation Advisory Committee (CoBoSAC) and had also advised the EPFO and PFRDA.
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Jaiswal, while talking to The Hitavada in an interview, said that the GST and demonetisation had increased operational difficulties and hardships of the people but its intents were good and good results would come out soon. “Magma Housing has disbursed Rs 16,000 crore and our collection as on date is 93 per cent. Our return on assets (ROA) is 2 per cent, which is very good. Our stock price in March was between Rs 90 and Rs 95, which is now at Rs 175,” he said.
Jaiswal was optimistic that the Q4 would show growth for all the companies. Appreciating the Pradhan Mantri Aawas Yojana (PMAY), Jaiswal said: “Under the PMAY, the Government has disbursed Rs 1,300 crore and above 55,000 people have taken the benefit till now. The scheme is the best scheme of the Government in the past 60 years.”

Advocating that Pradhan Mantri Aawas Yojana would improve the quality and dignity of the underserved and the underprivileged, he said: “The Government should go for tie-ups with housing finance companies, which would boost the rural market economy and bring a revolution.” Jaiswal also counted the benefit of the lower income group (LIG) people if aligned with PMAY and housing finance companies.
Jaiswal, sharing his previous experience of setting up and building SME businesses from inception and turning them around for more than a decade, in the companies like Fullerton, Citigroup, Eicher Motors and Dhanlaxmi Bank, said: “The companies must concentrate on risk-based pricing and must tap the urban poor population.”

Magma Housing having its presence with 300 branches and operating in 1,900 Talukas with its present strength of 280 employees, plans to increase its strength to 800 employees and expand in new places like Aurangabad, Akola, Jalna and Beed districts in Maharashtra. The company is getting 60 per cent of its investment from other financial institutions. The company is also focused on financing small business, small vendors and salaried people in rural and semi urban areas, Jaiswal said.