Haryana Financial Corporation earns net profit of Rs 15.62 cr

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Chandigarh, Aug 1 (UNI) Haryana Financial Corporation today said it has posted a net profit of Rs 15.62 crore during the financial year 2007-08 as compared to Rs 6.37 crore during the last financial year.

The Corporation Chairman, Mr M L Tayal, during the 41st Annual General Meeting held here said the Corporation had earned net profit continuously for the last three years, owing to several structural reforms undertaken by it.

These reforms included a substantial reduction in the cost of borrowings due to debt swapping of high cost loans. The Corporation also floated one time settlement schemes to arrest Non-Performing Assets (NPAs) as a result of which the NPA level of the Corporation had been drastically brought down to 8.75 per cent at the end of financial year 2007-08.

He said that the net worth of the Corporation had improved at Rs 70 crore with a capital adequacy ratio of nine per cent. The Corporation was also making vigorous efforts to build up its asset base by adding quality loan portfolio.

Customers' meets are being organised regularly for direct interaction with the entrepreneurs. Similarly, disbursement procedures have also been simplified and sanctions are being granted in a time bound manner.

This has resulted in significant improvement in quality of loan portfolio of the Corporation which is evident from the fact that in respect of loans disbursed after signing of the MoU with SIDBI in March 2004, the Corporation has achieved the distinction of 0.96 per cent NPA level.

Mr Tayal said till last financial year, the Corporation had sanctioned loans worth Rs 2,781.19 crore to 18,406 units and disbursed loans worth Rs 1,730.15 crore to 16,968 units.

For the current financial year, the Corporation has fixed targets of Rs 15 crore for sanction of loans, Rs 70 crore for disbursement of loans and Rs 80 crore for recovery.

UNI PS SB RN1559

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