SRINAGAR: The Government on Thursday approved to enhance authorized Share Capital in favour of the Jammu and Kashmir State Financial Corporation (JKSFC) to Rs 500 crore from the existing Rs 100 crore limit, with the corporation asked to increase its capital share by exploring possibilities of issuing fresh bond series, after due credit analysis by a credible rating agency.
This was disclosed by Minister for Finance and Ladakh Affairs, Abdul Rahim Rather, who is also Chairman of Corporation during 54th Annual General Meeting (AGM)of the corporation held at Banquet Hall, Srinagar.
He informed the AGM of the shareholders that the Corporation has made a headway in the direction of restoration of refinance from SIDBI adding that the Corporation has also been nominated as a channelizing agency of National Minorities Development Corporation ( NMDC) to provide fund support to the minority community on easy terms. “Both these initiatives will enable the Corporation to take in hand the funding activity of MSME and micro enterprises on a fast track basis to give boost to the creation of employment opportunities for the youth of the state,” Rather added.
Rather said that after facing the worst financial crisis for about two decades, the Corporation has once again transformed into a credible financial institution with it present net worth standing at Rs 25.24 crore against a negative of Rs 104.58 crore in 2010.
He said the corporation has settled its outstanding liabilities that swelled to Rs 176.99 crore with SIDBI and other bond holders leaving behind a liability of just Rs seven crore , which is expected to be cleared shortly. He said plans are now afoot to penetrate the funding business in the MSME and allied sectors in an aggressive manner.
Rather said that the Corporation has registered a profit of Rs 407.23 lakhs during 2013-14 as against a profit of only Rs 78 lakh during the previous year despite the fact that the Corporation had to meet the liability of Rs 104.58 lakh pertaining to the previous year.
He said though the Corporation has no line of credit available at the moment, it has been able to continue with its lending activity from out of its internal revenue generation comprising of recoveries only adding that the Corporation has sanctioned loans to the tune of Rs 20.65 cr and disbursed loans amounting to Rs 11.31 cr with recoveries aggregating to Rs 19.55 cr during 2013-14.
Rather said as a result of continuous monitoring and follow-up, the standard portfolio of the Corporation has reached Rs. 33.53 crore by the end of March this year as compared to Rs. 12.93 crore on March 2011. He said the NPA management in the current sector is very effective and is being monitored very tightly by the Board of Directors adding that the fresh loans are not allowed to slip into NPAs. Simultaneously the Corporation makes every effort to reduce old NPAs through various measures including settlement under DRC mandate, auction of mortgaged un-revivable assets and also filing of recovery suites in respect of hard-core defaulters
After holding threadbare discussion, the AGM of the share holders of the corporation adopted the balance sheet and profit and loss account for the year 2013-14 along with the 54th Annual report of the Board of Directors on the working of the corporation.
Besides, share holders and members of the Management, the Economic Advisor to the Government, Jalil Ahmed Khan, Principal Secretary, Finance, B. B. Vyas, MD Farooq Ahmed Thokar, DGMs Mohammad Rafique and Nazir Ahmed Bhat, Chief Manager Showkat Ahmed, some leading entrepreneurs of state including Syed Shakeel Qalander, Ghulam Jeelani Ahenger, Afaq Qaidri, M. Y. Tickoo and Owais Sami.