KSFC Disburses Rs.150 crore in six months

Bangalore, Nov 02: The state run Karnataka State Financial Corporation, has disbursed loan to the tune of Rs.150 crore, mostly to Small and Medium Enterprises (SMEs) during the first half 2006-07, KSFC in a release here today said sector wise recipients included general engineering industries, food processing units besides services sector such as residential and service apartments, commercial complex and IT and ITeS services. During the first six months recovery was Rs.192 crore.

The company which was in red in recent years had diversified its activities into other financial products such as Insurance and Mutual funds. It had signed an MOU with IL&FS Ltd as a partner for launching a special purpose vehicle (SPV) for project evaluation, business model validation, e-governance loan syndication, issue management and similar customer-centric financial services.

The company which had projected an income of about Rs 215 crore for the year had initiated talks with the leading life Insurance compalies like HDFC, Met-Life and LIC for marketing life insurance products. Irt was also contemplating to take up business process outsourcing jobs such as asset reconstruction, legal consultancy, back office accounting and pay roll management to effectively utilise the vast pool of professionals it had.

With a condusive industrial climate KSFC set a target of Rs.400 crore in loan sanctions, Rs.325 crore for disbursement and Rs.520 crore for recovery for the current fiscal.

UNI