The Minister for Finance and Ladakh Affairs, Abdul Rahim Rather, who is also chairman of the J&K State Financial Corporation (SFC) has asked the Corporation to play its pioneering role in expeditious development of the Micro, Small and Medium Enterprises (MSME) and allied sectors by providing hassle free credit facility mostly to first generation entrepreneurs as it has now come out of red after a long gap of about 15 years. He said the Corporation has now improved its net worth to (+) Rs.3.84 crore ending Nov. this year as against (-) Rs.104.58 crore ending March 2009.Speaking at the 230th meeting of the Board of Directors of J&K State Financial Corporation (J&KSFC) held at Jammu today, the Minister called for pooling all possible resources to restore the positive glory of the Corporation which it was enjoying upto 1990. He assured Govt. will provide all logistic support to the management of the Corporation in this regard. He asked the Corporation to provide hassle free lending facility to the young entrepreneurs to enable them set-up their own self employment units for living a dignified life.
The Economic Advisor to Government Jalil Ahmad Khan, Principal Secretary, Finance Mr. B. B. Vyas, M.D SFC Mr. A. R. Makroo, AGM,SIDBI Mr. Anuj Jain, Sr. pisional Manager, LIC Mr. D. C. Thakur, DGM (PNB) Mr. M. Lateef Mir, Mr. Akhil Chopra, Mr. Tafazal Husain and Er. Zahoor Ahmad were present in the meeting.The meeting was informed that the Corporation has re-started generating net profit after a gap of about 15 years and its net-worth has turned positive after a gap of 10 years from negative net worth of Rs.104.58 crore as on 1.4.2009 to positive Rs.3.84 crore upto November,2013.The Corporation has updated it’s statutory audit after a gap of 09 years and it’s sanction and disbursement in term loan has multiplied by three times during the last four years. It was informed that during the last 4 years it has managed decades old debt recovery of Rs.79 crore which is a record recovery.It was further informed the the Corporation has settled its liabilities of Rs.173 crore against total liability of Rs.181 crore which were in default from year 2006-07. Keeping in view tangible improvement in the working of Corporation, SIDBI has in principle agreed to restore its line of credit to the tune of Rs.50 crore after a gap of more than 10 years and the Union Ministries of Finance and MSME have recommended re-capitalization support of Rs.137 crore to the Planning Commission, GOI to further strengthen the capital base of the Corporation.
The Minister also asked the management of the Corporation to organize regular training courses for its employees to enhance their managerial capabilities. He also called for bringing more transparency in the working of Corporation. He enjoined upon the management of the Corporation to ensure 100% recovery of targeted dues adding that officers and field agencies of the Corporation should work with added dedication to bring more tangible improvement in the working and financial base of the Corporation. He appreciated the Corporation for its overall good performance.The M.D. informed the meeting that the Corporation has sanctioned loans to the tune of Rs.12.64 crore in favour of 143 entrepreneurs during the current fiscal so far thereby achieving 63.2% of the allotted target of Rs.20.00 crore. The sanctions have increased by 10.88% compared to the sanctions of Rs.11.40 crore made during the corresponding period of the previous year. Loans aggregating to Rs.7.76 crore have so far been disbursed to 139 beneficiaries during the same period.The Managing Director further informed the meeting that the Corporation has effected a record recovery of Rs.13.14 crore during the first 8 months of the current fiscal against a target of Rs.19.13 crore which forms 68.7% achievement of the target. He informed the meeting that the borrowing (liabilities) of the Corporation which were Rs.180.40 crore in April 2009 has now come down to just Rs.7.70 crore. He informed that the Corporation is shortly approaching to National Minority Finance and Development Corporation (NMFDC) Govt. of India to provide loan on concessional basis which will be extended to Micro, small and medium entrepreneurs at 6 to 7% rate of interest to ensure employment generation in the State.