CHANDIGARH: The Haryana Financial Corporation (HFC) has registered a net profit of Rs. 6.37 crore and an operational profit of Rs.3.27 crore during the last financial year, its Chairman M.L. Tayal said here on Monday after presiding over a meeting of the Board of Directors.

Mr. Tayal, who is also Principal Secretary to Haryana Chief Minister, disclosed that a target had been fixed to sanction term loans worth Rs.225 crore during the financial year 2007-08. He said the HFC had earned the net profit despite the fact that it had to make additional provisions of Rs.14.04 crore during the year on account of the new provisioning norms of the SIDBI. The Non Performing Assets (NPA) level of the Corporation had been brought down from 75 per cent at the end of 2005-06 to 64 per cent at the end of financial year 2006-07.

Mr. Tayal said the Corporation was on the path of recovery thanks to several structural reforms that included a reduction in the cost of borrowings from 12 per cent to 8.9 per cent per annum due to debt swapping of high cost loans to the tune of Rs.168 crore during the last two financial years. This had resulted in reduced interest payment by Rs.10 crore per annum. HFC also launched one-time settlement schemes under which it settled 574 loan accounts pertaining to 419 units during 2005-06 and 212 loan accounts pertaining to 151 units during 2006-07 worth about Rs. 93 crore. During the two financial years, it had been able to recover Rs. 225 crore, Mr. Tayal added. According to Mr. Tayal, effective schemes like equipment re-finance scheme were introduced during the year.

Procedure

The disbursement procedure was simplified and quicker, faster and speedier processing was ensured. As a result of faster clearances and competitive rates, the Corporation was able to sanction Rs. 248 crore during the two financial years of 2005-06 and 2006-07.

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