GTF to launch 40 satellite offices

Mumbai, May 16 (UNI) Mumbai-based Global trade finance limited (GTF), which owns more than 80 percent market share in export factoring business in India, has posted a net profit of Rs 29.42 crore for FY07 against profit of Rs 13.33 crore in FY06.

Announcing the financial results today, Arvind Sonmale, MD, said the company will set up 40 satellite offices in tier-2 cities in the country and will raise capital from domstic and foreign banks to expand its operations in FY08.

GTF will raise USD 120 million from banks abroad and Rs 23,450 million from domestic financial institutions in FY08. The company also plans to extend risk free credit to Small and medium scale industries (SMEs), which constitute more than 62 percent of business handled by the company.

''GTF aims to extend a helping hand towards SMEs by giving relief from Credit risks and an accelerated cash flow is ensured to companies. This will provide a hassle-free trade finance services to SMEs.'', said Sonmale.

The company gained a three-fold increase in loans disbursed which is around Rs 6213.8 crore in FY07 as against Rs 2805.8 crore in FY06. The factored loan assetbook grew to Rs 1749.6 crore in the prsent fiscal from Rs 799 crore in previous fiscal. The non performing assets (NPA) ratio was recorded nil for FY07.

The return on equity for FY07 has also grown to 35.83 percent from the 28.22 percent in past fiscal while the cost-income ratio was lowered to 31.07 percent from 38.18 percent in past year, he said.

The company had launched a e-loan programme last year whereby an SME customer can get export factoring facility sancioned online.

UNI