Srinagar, July 31, (Scoop News)- The Minister for Finance and Ladakh Affairs, Ab Rahim Rather, who is also Chairman of Jammu & Kashmir State Financial Corporation (J&KSFC) today, announced that the Government has approved to enhance authorised share capital in favour of the Corporation from the present limit of Rs 100 cr. to Rs.500 cr. He said the Corporation will also explore possibilities of issuing fresh bond series, after due credit analysis by a credible rating agency, to increase its capital base.
Addressing the 54th Annual General Meeting (AGM)of Jammu & Kashmir State Financial Corporation held at Banquet Hall, Srinagar Thursday afternoon, Mr Rather said that after facing the worst ever financial crisis for about two decades, the Corporation has once again transformed into a credible financial institution with it’s + net worth of Rs25.24 cr. against – Rs 104.58 cr. in 2010 when the revival plan for the Corporation was rolled out by the present Government. He said the joint effort of all the stake holders, the state Govt., SIDBI, participating financing institutions, Management and staff ,under the revival plan ,has enabled the corporation to settle it’s whopping over due outstanding liabilities of Rs176.99cr with SIDBI and other bond holders leaving behind a liability of just Rs 7 cr, which is expected to be cleared shortly. He said the Corporation has achieved a distinction of clearing the backlog of its audited annual accounts up to 2013-14 and is consistently in profit for the fourth year in a row He said plans are now afoot to penetrate the funding business in the MSME and allied sectors in an aggressive manner.
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 Kalander, Ghulam Jeelani Ahenger, Afaq Qaidri, M. Y. Tickoo, Owais Sami and Zahoor Ahmed Bhat also attended the meeting.
Mr Rather said that the Corporation has registered a profit of Rs 407.23 lakhs during 2013-14 as against a profit of only Rs 0. 78 lakhs 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 it’s lending activity from out of it’s 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. 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. “Bothe 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,”Mr Rather added.
Mr Rather said as a result of continuous monitoring and follow-up, the standard portfolio of the Corporation has reached Rs. 33.53 crore as on 31.03.2014 as compared to Rs. 12.93 crore as on 31.03.2011. 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
While expressing acknowledgement for the valuable support, guidance and cooperation received from State Government, SIDBI, other Financial Institutions ,and appreciating the strenuous efforts put in by Directors, management and the staff of the corporation , Mr Rather said that the journey of rejuvenating and reviving the Corporation, which was set in motion with adoption of its Revival Plan in February, 2010, has successfully touched several prescribed mile-stones adding that it is now gaining further momentum with every passing day. He said that JKSFC has been the premier financial institution of J&K State which has to its credit bringing up a number of first generation entrepreneurs. He urged all the stake holders to continue their endeavour till the objective of restoration of golden past of the Corporation is fully achieved.
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.
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