HFC records Rs 6.37 cr net profit

Chandigarh, Jun 11 (UNI) The Haryana Financial Corporation (HFC) has registered a net profit of Rs 6.37 crore and an operational profit of Rs 3.27 crore during the last financial year.

Stating this after the 308th meeting of the Board of Directors of the Corporation here today, HFC Chairman M L Tayal said a target had been fixed to sanction term loans amounting to Rs 225 crore during the financial year 2007-08.

Mr Tayal, who is also Principal Secretary to the Chief Minister, said the HFC had earned net profit despite the fact that it had to make additional provisions of Rs 14.04 crore during the year on account of the new provisioning norms of the SIDBI.

The Non Performing Assets' (NPA) level of the Corporation has been brought down from 75 per cent at the end of 2005-06 to 64 per cent at the end of financial year 2006-07.

Mr Tayal said the Corporation was on the path of recovery as a result of several structural reforms initiated by it.

These included reduction in cost of borrowings from 12 per cent to 8.90 per cent per annum due to debt swapping of high cost loans to the tune of Rs 168 crore during the last two financial years resulting into reduced interest payment by Rs 10 crore per annum.

The Corporation also launched one-time settlement schemes as a result of which it has settled 574 loan accounts pertaining to 419 units during 2005-06 and 212 loan accounts pertaining to 151 units during the year 2006-07 to the tune of about Rs 93 crore.

During the two financial years, the Corporation has been able to recover Rs 225 crore, he said.

UNI