APSFC aims at doubling profits to Rs 20cr this year

The Andhra Pradesh State Finance Corporation (APSFC) is anticipating a 100 per cent growth in its bottomline during the current fiscal.

"Last year, the corporation earned a profit of Rs 10.1 crore. This year, we will swap some of our high-cost loans and concentrate on recoveries and our profits are expected to be more than Rs 20 crore," M Gopala Krishna, chairman, APSFC, told the media here on Monday.

APSFC has been paying an average interest of between 12 per cent and 13 per cent for loans of about Rs 300 crore.

The corporation now is in talks with the Small Industries Development Bank of India (Sidbi) to swap the high-cost debt. The swapping of high-cost debt alone is expected to add Rs 20 crore per year to the bottomline.

"At present, we hope to garner deposits of Rs 30 crore from the public. We are offering 6.5 to 7.5 per cent interest on these deposits and will utilise these deposits to clear off certain high-cost debts," he revealed.

For the last four years, APSFC has been concentrating on collecting old dues from the advance holders and NPAs have come down to 25 per cent from 65 per cent over the last four years.

"Last year, the corporation's recoveries were about Rs 450 crore," he said.

This year, APSFC has targeted a disbursement of Rs 401 crore to businesses as against Rs 283 crore during the last fiscal.

"At present, we are collecting 11.5 to 13.5 per cent interest on our advances from entrepreneurs but with Sidbi having earmarked Rs 10,000 crore under the small and medium enterprises (SME) group, APSFC is eligible for major amounts from Sidbi," APSFC is also in talks with Sidbi for a joint venture to sanction loans between Rs 50 crore and 100 crore to a single unit, he said.