KSFC to set up subsidiary jointly with IL

Bangalore, Apr 10 (UNI) The State-owned Karnataka State Financial Corporation (KSFC) proposes to set up a subsidiary jointly with IL and FS Limited, KSFC Chairman V Umesh said today.

In a statement here, he said the new venture 'Karnataka Enterprise Solutions', to be launched in 2007-08, besides offering various financial services, would offer consultancy on technical, financial feasibility of projects, business model validation, issue management and loan syndication.

Stating that the Corporation had earned a profit of Rs 6.95 crore for 2006-07, Mr Umesh said that during the year, the Corporation had sanctioned Rs 421 crore to small and medium enterprises, thus registerng a compounded growth of 33 per cent. The disbursement stood at Rs 310 crore, compared to Rs 199.86 crore in 2005-06, up by 55 per cent. The recovery for the year stood at Rs 500 crore.

He said that during the current fiscal, it was proposed to sanction Rs 460 crore for new projects, disbursement of Rs 400 crore and about Rs 540 crore recovery.

UNI