Rather for professional, financial restructuring of Corporation

Excelsior Correspondent

Minister for Finance and Ladakh Affairs, Abdul Rahim Rather chairing AGM of J&K SFC at Jammu on Wednesday.
Minister for Finance and Ladakh Affairs, Abdul Rahim Rather chairing AGM of J&K SFC at Jammu on Wednesday.

JAMMU, Jan 22: Saying that commercial banks have an onerous responsibility to redouble their lending support to MSME and other sectors of economy as these sectors hold great promise for unfolding large employment potential for the youth of the State, the Minister for Finance and Ladakh Affairs,  Abdul Rahim Rather today expressed optimism that revival of J&K State Financial Corporation (J&K SFC) would go a long way to improve the existing lending scene in the State.
He said after remaining in red for about 15 years, the Corporation has once again started generating net profits, besides sanctioning and disbursement of term loans, adding that during the last financial year, loans amounting to about Rs. 18.80 crore have been sanctioned and Rs. 15.23 crore disbursed to the beneficiaries.
Speaking at the 53rd Annual General Meeting of the Jammu and Kashmir State Financial Corporation (J&KSFC) in Sehkari Bhawan, Jammu today, Mr. Rather, who is also Chairman of the Corporation, said that SFC is the first public sector undertaking, which after a gap of 9 years, has now updated Audited Balance Sheets and Profit and Loss Accounts, adding that it has now cleared a 7 years backlog of audited accounts.
He said again it was heartening to note that the Corporation has been able to turn its negative net worth of Rs. 104.58 crore in 2009 into a positive net worth of Rs. 3.67 crore as on ending March 2013, hoping that the positive network of the Corporation will increase to over Rs. 25 crore by the end of current financial year. He said after continuously suffering huge losses during last 15 years, the Corporation has now started generating profits again from the 2011-2012 when it registered a net profit of Rs. 4.38 crore.
The meeting among others was attended by Economic Advisor to the Government, Jalil Ahmed Khan, prominent businessmen of the State, including C.L. Gulati, Akhil Chopra, Mohammad Ashraf, concerned share holders and officers of the Corporation.
The Minister said that SFC has also managed recoveries from its decade’s old sticky debts to the extent of Rs. 79 crore and settled liabilities of Rs. 173 crore against total liability of Rs. 181 crore which had been in default from the year 2006-07. “The Corporation has reduced its NPA portfolio from Rs. 105.40 crore to Rs. 66.23 crore through its consistent recovery drives supported by “One Time Settlement Scheme” brought in the year 2010, Mr. Rather added.
He said after witnessing spectacular progress on revival plan of the Corporation, the SIDBI has finally agreed to restore the refinance facility to it and most likely their (SIDBI) credit line will become operational during the next financial year.
The Minister said that the Government and the management has embarked on a three pronged strategy for ensuring professional and financial restructuring of the Corporation to strengthen its capital base which was imperative to restore its past glory when it used to play a very important role in promoting industry, tourism and transport related ventures in the State.

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