Bangalore: The Karnataka State Financial Corporation (KSFC), which had run into problems for nearly five years, has registered an operating profit of Rs. 5.02 crore in the last financial year.

KSFC Managing Director B.R. Jayaramaraje Urs and Executive Director S.S. Chandrashekar said here on Tuesday that the special thrust given to certain areas had paid good dividends, and the corporation was confident of doing even better in the coming financial year. It planned to provide financial assistance of Rs. 400 crore in 2006-07 and step up recovery of dues.

Apart from customer-friendly business strategies, a variety of rationalisation measures had been implemented to ensure a higher degree of transparency in the functioning of the corporation, they said. Continued priority to transparency and accountability enabled improved performance.

Faster loan clearance

The time for sanction of loans was pruned considerably and this helped entrepreneurs implement their projects in time, they said.

Mr. Urs and Dr. Chandrashekar said the KSFC had consolidated its financial position mainly on account of improved operational efficiency with a customer-centric approach and simplified and standardised working systems and processes. With the growing importance of small and medium enterprises in the country's economy, the corporation intended to give a special thrust to upgrading of technology in small and medium enterprises. Sectors such as textiles, engineering and automobile, group housing and tourism-related activities would be promoted in the coming years.

To enable speedy clearance of loan proposals, the KSFC had adopted a novel method of conducting project clearance committee meetings in different parts of the State, close to the location of the industry concerned. The Managing Director and senior executives of the KSFC interacted with prospective entrepreneurs and took immediate decisions on their loan applications, they said. This strategy enabled the corporation to sanction loans totalling Rs. 318 crore in the last financial year. It also recovered loans totalling Rs. 553.94 crore, they added.

Printer friendly page  
Send this article to Friends by E-Mail