Fin Min Drabu for diversification of financial corporation’s activities

SRINAGAR: The Minister for Finance, Dr Haseeb Drabu, Thursday stressed on the need for diversification of Jammu and Kashmir State Financial Corporation’s activities with a new business model.
Chairing the 233rd meeting of its board of directors here, the Finance Minister said the diversification using a new model, which is in tune with changed circumstance, “is a necessary step for achieving operational viability for the Jammu and Kashmir State Financial Corporation (JKSFC)”.
Drabu asked the corporation “to come up with a fresh business model that envisages acquiring of infested assets from financial institutions on discount rates on the pattern of ARC and focus upon revival or resale of such assets on viable lines”.
He also directed the management of the corporation to “streamline and rationalise” its business network across the state and concentrate upon reducing expenditures and creating fresh opportunities of investment to ensure increased returns.
It, he said, can set the corporation on a profitable path.
During the meeting the board desired that exit policy may be considered for deserving borrowers of the corporation based on individual merit of each case and depending upon the status and working results.
It also deliberated upon the performance of the organisation during the year 2014-15, with the officials revealing that JKSFC has disbursed loans to the tune of Rs 8.55 crore among various unit holders and made recoveries to the tune Rs18.93 crore during the year.
During the meeting, the board approved the balance sheet and profit and loss account of the JKSFC for the financial year 2014-15. It desired to recall the corporation’s staff and vehicles that have been deployed to other departments and residences.
The meeting was attended by the Commissioner Secretary Finance Navin Kumar Choudhary, President LBD and SLBC of J&K Bank S K Bhat, Assistant General Manager SIDBI, Neeraj Bhalla, industrialists Zahoor Ahmad Bhat and Ghulam Jeelani Ahanger, Managing Director JKSFC Mohammad Farooq Thoker, General Manger JKSFC Mohammad Rafique Dar, and General Manger JKSFC Nazir Ahmad Bhat.