APSFC Excels, Declares Net' Profit After 9-year lapse'

Hyderabad, June 27: | Updated: Jun 28 2003, 05:30am hrs
After a lapse of nine years, the Andhra Pradesh State Financial Corporation (APSFC) has declared a net profit of Rs 2.35 crore after provisioning during 2002-03. The corporation had declared only operating profit of Rs 1.14 crore during 2001-02 and Rs 3.69 crore in 2002-03.'

During the year under review, APSFC consolidated its position with improved performance to maintain its lead position as one among the best out of 18 SFCs in the country in the areas of sanctions, disbursements and percentage of recovery.'

Against its target of sanctions of Rs 415 crore, APSFC sanctioned Rs 420 crore, Rs 301 crore as disbursements and achieved highest ever recovery of Rs 409 crore against a target of Rs 380 crore for 2002-03, according to Mr M Gopalakrishna, APSFC chairman.'

Addressing newsmen here, he said the corporation has raised Rs 45.25 crore through SLR bonds which is the highest amount raised in the country during 2002-03. It has also reduced the provisions against NPAs from Rs 14.17 crore in 2001-02 to Rs 1.07 crore during 2002-03.'

During the year, the operating profit per employee rose from Rs 19,000 to Rs 68,000 and there was also reduction in the establishment cost to interest income by 5 per cent from 21.57 per cent in 2001-02 to 16.5 per cent in 2002-03.'

Highlighting the future plans of the corporation, the chairman said that it has identified sunrise sectors of industry and growth engines for promotional activities which include the food processing sector, drugs and pharmaceuticals, mineral industry, etc.'

On the outlook for the next year, APSFC has decided to enter into a tripartite MoU with the state government and Small Industries Development Bank of India (Sidbi) to infuse Rs 6 crore as equity in APSFC during 2003-04 apart from standing guarantee for all the loans of the corporation.' SIdbi, on its part, proposes to extend a package of relief and concessions which includes reduction of interst rates from 12 per cent to 10.5 per cent on all existing high cost refinance borrowings.'

For the year 2003-04, the corporation has set targets of Rs 419 crore as sanctions, Rs 312 crore as disbursements and Rs 471 crore as recovery. To this move, it is evolving a strategy for better services, improve efficiency for small and medium scale sector.'