Excelsior Correspondent
SRINAGAR, July 31: Minister for Finance and Ladakh Affairs, Abdul Rahim Rather, who is also Chairman of Jammu & Kashmir State Financial Corporation (J&KSFC) today, announced that the Government has approved to enhance authorised share capital in favour of the Corporation from the present limit of Rs 100 crore to Rs.500 crore He said the Corporation will also explore possibilities of issuing fresh bond series, after due credit analysis by a credible rating agency, to increase its capital base.
Addressing the 54th Annual General Meeting (AGM)of Jammu & Kashmir State Financial Corporation here this afternoon, Mr Rather said that after facing the worst ever financial crisis for about two decades, the Corporation has once again transformed into a credible financial institution with it’s + net worth of Rs 25.24 crore against – Rs 104.58 crore in 2010 when the revival plan for the Corporation was rolled out by the present Government.
He said the joint effort of all the stake holders, the state Govt., SIDBI, participating financing institutions, management and staff, under the revival plan, has enabled the Corporation to settle it’s whopping over due outstanding liabilities of Rs 176.99 crore with SIDBI and other bond holders leaving behind a liability of just Rs 7 crore, which is expected to be cleared shortly. He said the Corporation has achieved a distinction of clearing the backlog of its audited annual accounts up to 2013-14 and is consistently in profit for the fourth year in a row. He said plans are now afoot to penetrate the funding business in the MSME and allied sectors in an aggressive manner.
Besides, share holders and members of the management, the Economic Advisor to the Government, Jalil Ahmed Khan, Principal Secretary, Finance, B. B. Vyas, MD Farooq Ahmed Thokar, DGMs Mohammad Rafique and Nazir Ahmed Bhat, Chief Manager Showkat Ahmed, some leading entrepreneurs of state including Syed Shakeel Kalander, Ghulam Jeelani Ahenger, Afaq Qaidri, M. Y. Tickoo, Owais Sami and Zahoor Ahmed Bhat also attended the meeting.
Mr Rather said that the Corporation has registered a profit of Rs 407.23 lakhs during 2013-14 as against a profit of only Rs 0.78 lakhs during the previous year despite the fact that the Corporation had to meet the liability of Rs 104.58 lakh pertaining to the previous year. He said though the Corporation has no line of credit available at the moment, it has been able to continue with it’s lending activity from out of it’s internal revenue generation comprising of recoveries only, adding that the Corporation has sanctioned loans to the tune of Rs 20.65 crore and disbursed loans amounting to Rs 11.31 crore with recoveries aggregating to Rs 19.55 crore during 2013-14.
Mr Rather said as a result of continuous monitoring and follow-up, the standard portfolio of the Corporation has reached Rs. 33.53 crore as on 31.03.2014 as compared to Rs. 12.93 crore as on 31.03.2011. He said the NPA management in the current sector is very effective and is being monitored very tightly by the Board of Directors, adding that the fresh loans are not allowed to slip into NPAs. Simultaneously the Corporation makes every effort to reduce old NPAs through various measures including settlement under DRC mandate, auction of mortgaged un-revivable assets and also filing of recovery suites in respect of hard-core defaulters.
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