Magma Fincorp Limited is set to widen its branch network and sales promotion work in order to increase the depth of financial inclusion and make credit facilities reach those areas which are still unbanked, said a top official.

"We plan to go deeper. The company currently operates in 21 states, through 166 branches covering about 2,000 marketing clusters, which are mostly in semi-urban and rural areas. The plan now is to penetrate deeper into the semi-urban and rural markets thereby reaching out to a much larger number of clusters," Ashutosh Shukla, chief operating officer of the company said.

The company has adopted the hub and spoke model in order to spread its reach and penetrate deeper into the rural and semi urban segments of the country. The company plans to raise the number of branches by the end of 2010-11.

"The company has opened 13 branches this year and is working on starting another 14 by March 2011," he said.

The company would be focusing mainly in tractors, SME and used vehicle financing in the coming days.

Out of the total credit disbursement by the company, 40% goes for the urban market while the remaining 60% goes to semi urban and rural areas.

"We plan to maintain this focus this year too," said company national sales head Sumit Mukherjee.

"More than 1,000 sales and marketing promotion activities have been planned per month. The initiative was started in August 2010 and is currently being scaled up to reach the monthly figure of over 1,000 activities by January 2011," Shukla said.