Jammu and Kashmir State Financial Corporation (J&KSFC) corporation is back in business with a positive net worth, having cleared the debts, and taken up again its assigned role of lending to MSME and allied sectors of the State so as to revive its golden past. This was stated Saturday by the Minister for Finance and Ladakh Affairs, Abdul Rahim Rather.
Speaking at the 52nd Annual General Meeting of the J&K SFC held at Banquet Hall Srinagar, this evening Mr Rather, who is also Chairman of the Corporation enjoined upon the J&K State Financial Corporation (J&K SFC) to play its assigned role of lending to Medium, Small and Micro Enterprises (MSME) and it’s allied sectors of the State to accelerate its economic development.
Recalling the excellent role played by the J&K SFC in the past to promote MSME sector and Nursing the first generation entrepreneurship in the State, Mr Rather said it was heartening that the corporation is now again back in business and has restarted its main activity of lending adding that it has also reentered in the MSME sector. He said during the last four years since it’s revival from March 2010, the corporation has sanctioned loans to the tune of Rs 66.69 Crores and made disbursement of 49.93 Crore. He said the fresh lending and improved recoveries have resulted into improving its standard portfolio from 10 percent as on April 1, 2009 to 51 per cent as on April 1, 2013.
Mr. Rather said that prior to the implementation of its revival plan in March 2010, this premier financial institution had lost all its business and had descended to a huge negative net worth of over Rs 104.78 Crore and it was in default to its supporting institutions to the extent of Rs 180.40 crore. He said the work of audit of its accounts had hit a backlog of six years. “ But today with the adoption of the audited accounts for the year 2011-12 , the Corporation shall be clearing 7 annual accounts in a period of four years,” Mr. Rather added. He said the income of the corporation has increased from Rs 5.74 crore in 2008-09 to Rs 9.39 crore during last fiscal.
He said the net worth of the Corporation which had sunk to Rs (–) 104.78 crore as on 1.4.2009 has turned positive to Rs +1.39 crore as on 1.4.2013 after a gap of more than a decade.
Talking specifically of the achievements made during last fiscal, the Minister said the Corporation issued sanctions of Rs 2875.00 lakh and made disbursement of Rs 1840.69 lakh. The focus remained on recoveries and during the period under report, an amount of Rs 1745.51 lakh was recovered. He said the Corporation earned a total revenue income of Rs 757.17 lakh during the same period as against the revenue income of Rs 366.39 lakh earned during the previous year.
He said with the financial support from the State Government, the management settled liabilities of Rs 173 crore out of a book debt of Rs 180.40 crore, thus taking the Corporation out of the debt trap.
He said the corporation successfully launched and executed a One Time Settlement Scheme (OTSS 2010) and settled a large number of long pending bad accounts.
He said the corporation while following an effective mechanism to recover the decades old debts in default during the last four years, recovered Rs 76.53 crore. While providing an exit route to loss bearing constituents, it has reduced its own loss portfolio from 62% as on 1.4.2009 to 24% as on 1.4.2013.The debt equity ratio of the Corporation has improved substantially from 2.50:1 to 1:9.61.