KSFC to reach out further

The Karnataka State Finance Corporation will reach out to the needy entreprenuers in a bid to improve the customer service.

It will hold business development meets at all the district headquarters. KSFC Managing director Jayaramaraje Urs told reporters in Dharwad that senior execitives of KSFC would meet entrepreneurs at their doorsteps and discuss their projects and financial requirements. Then they would give on the spot clearance for the loan proposal, he added.

The MD said the KSFC after reeling under loss successively had wriggled out of it and earned a net profit of Rs 2.74 crore in last two years.

To reduce the Non-Performing Assets (NPA) from the current 50 per cent to less than 10 per cent, the KSFC had resorted to measures like debt restructuring, One Time Settlement (OTS) and legal recourse. The loan interests of such NPA accounts were also lowered to convert substandard assets to standard assets.

In a bid to improve operational efficiency, the KSFC has brought in several changes in the corporate governance, the MD said.

He informed that stress would be laid on credit linked capital subsidy,technology upgradation fund scheme and national equity fund scheme, rates of interest and concessions.Urs said the corporation targetted raising funds to the tune of Rs 315 crore from SIDBI as well as bonds and disburse Rs 285 crore.

He said the RBI has consented for the KSFC to open franchises to sell government bonds and also signed an MoU with IFFCO-TOKYO General Insurance Company for coverage of insurance to improve further the income of the corporation.

Replying to a question, the MD said that registration fee and stamp duty would be exempted for loans to land allotted by KSSIDC and KIADB. For other lands the KSFC would fund the same and recover it later.

Giving statistics of the Corporation's performance he said it had sanctioned Rs 242.37 crore during 2003-2004 and disbursed Rs 240.34 crore. During the same period it had recovered loans to the tune of Rs 582.12 crore.