HFC makes net profit of over 10 cr

Chandigarh, Feb 15 (UNI) The Haryana Financial Corporation (HFC) has earned a net profit of Rs 10.58 crore during the current financial year up to December, 2006 as against Rs 11.94 crore during the last financial year.

Haryana Financial Corporation Chairman and Principal Secretary to Chief Minister, M L Tayal said the shares of the Corporation having the face value of Rs 10 per share had recently been quoted at Rs 12.60 per share.

Mr Tayal said the Corporation, which was running into losses during the previous regime and had suffered a loss of Rs 22.85 crore during the year 2004-05, made a turnaround due to its sustained efforts and better management.

He said due to sustained recovery campaign and introduction of schemes for settlement of Non Perfrming Assets (NPAs) and loss accounts keeping in view the interest of the borrowers, the Corporation was able to recover outstanding dues to the tune of Rs 214.09 crore during the past two years.

Mr Tayal said as a result, Non Performing Assets of the Corporation were reduced from Rs 249.95 crore as on March 31, 2005 to Rs 195 crore as on December 31, 2006.

He said the Corporation had been able to reduce its cost of borrowings from 12 per cent to 8.91 per cent by premature payment of high cost borrowings to the tune of Rs 168 crore during the last two years out of its internal accruals and debt swapping.

UNI