SFC nominated as channelizing agency for NMDFC in J&K: Rather

KL Report

SRINAGAR

Asking the J&K State Financial Corporation (JKSFC) to hold monthly Business Review Meetings to further enhance its performance, the Minster for Finance and Ladakh Affairs, Abdul Rahim Rather, who is also Chairman of the Corporation, Saturday urged for providing hassle-free lending facilities to the prospective entrepreneurs without getting entangled into the cob-web of Institutional formalities. He also urged for minimizing the gap period between sanction and disbursement of the credit.

“While financing fresh proposals, thorough appraisal should be carried out for minimizing possible Institutional formalities at the pre-sanction stage to ensure hassle-free disbursement,” Rather said while chairing the 232nd meeting of the Board of Directors of J&K SFC. He said project implementation should in no way get affected due to delayed disbursement for want of Institutional formalities.

While appreciating the Management of the Corporation for earning the distinction of being the only PSU in the State having updated its Annual Accounts, the Minster emphasized for further rejuvenating/ revitalizing its areas of operations viz. sanction, disbursement and recovery of loans.

While urging for focused attention towards recoveries, the Minster said “current fiscal should be the year of recoveries” which he said was imperative for the financial health of the Corporation. For this purpose, he called for devising a comprehensive recovery policy and vigorous follow-up coupled with robust mechanism for recovery of overdue of the Corporation. He also called for efficient book keeping and Management Accounting adding that customized training programmes for employees of the Corporation need to be organized to infuse the element of Professionalism and Human Resource Development in the rank and file of the Corporation.

He stressed the need for a proper Assets Evaluation Policy in the Corporation. He also asked the Management of the Corporation to gear up for shouldering responsibility of the Channelizing Agency of the National Minority Development Finance Corporation (NMDFC) in the State.

The Minister also asked the Corporation to enhance and diversify its business and build good portfolio with main focus to identify the changing needs of the customers and strive to fulfill these needs to their utmost satisfaction. He urged for improving the assets quality and volume of business growth while keeping customer satisfaction as its top priority.

The Managing Director informed the meeting that the Corporation after remaining in red for about 10 years is now earning profit since last three years and that its net worth has substantially improved to Rs. (+)25.24 crore. He said after a long gap the Corporation has completely updated and audited its Annual Accounts. He said the Corporation has sanctioned an amount of Rs. 20.65 crore as loan in favour of ‘211’ entrepreneurs during the last fiscal and disbursed an amount of Rs. 11.31 crore while effecting a recovery of Rs. 19.56 crore during the same period. He said the Corporation has put in place all its efforts to maximize the recovery of loans. He said in order to reduce the NPA portfolio, the Corporation has recently settled ‘56’ loan accounts under Merit Scheme and recovered an amount of about Rs. 3 crore.

Besides, approving the Balance Sheet of the Corporation and profit and loss accounts for the year ended 2013-14, the Board also approved to implement the SRO 164 of June 5th, 2014 entitling employees of the Corporation to avail the retirement age of 60 years at par with the other employees of the State Government.

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