The Rajasthan Financial Corporation (RFC) has recorded its highest ever profit in the last fiscal, registering over 120 per cent rise in its profits. The corporation has been able to reduce nonperforming assets (NPA) by 15 per cent, the financial institution announced it recently.
With this, the leading termlending development financial institution, mandated to also provide finance to small and medium scale enterprises, looks to have set forth a successful management example for other organisations in the recent times that seem to be, otherwise, grappling with mounting NPAs affecting their profit books.
For addressing the issue of NPAs, “the corporation had established a NPA recovery cell in January this year along with provisioning a single installment settlement scheme for such bad loans, as a result, 230 of the defaulting borrowers agreed to the settlement”, according to a senior Rajasthan Financial Corporation officer. The surge in the profit of the corporation also reflects improvement in the performance of small industries in the State. The corporation in the process has also recorded the maximum number of NPA settlements achieved by it in a year.
As a result, over Rs 6 crore have been recovered while another recover of Rs 15.81 crore has been assured. The net NPA recovery during the year stood at Rs 28.54 crore, much above the recovery registered in previous years. Many of these defaulters had even relocated to other States of the country. To bring them for settlement has been a major achievement for the corporation, added the officer.
The corporation, apart from going for aggressive marketing also followed the footsteps of other private banks in adopting a ‘door-to-door’ pursuit of possible loan aspirants. As part of the process, camps were held at all industrial areas across all 33 districts of the State, touching over 33,000 entrepreneurs and aspiring investors. It was thus, that the corporation achieved its highest loan disbursement since 2011-12. The RFC also overshot its loan approval target of Rs 350 crore for the fiscal year and granted Rs 386.68 crore loans. The loan recovery also exceeded its target of Rs 255 crores to reach Rs 259.47 crore during the fiscal. This enabled the corporation to record a profit of Rs 23 crore during the year against Rs 10.78 profit in the previous year. The profit had increased despite implementation of 7th Pay Commission and commencement of the promotion process after a gap of five years.
The financial restructuring of the organisation had helped the corporation employees to have the pay commission implemented before many other State government companies, while the same further motivated employees to work more vigorously too, said another RFC officer. In the recent times, a major achievement by RFC has been in the direction of promoting self-employment among youth. During the last fiscal year, 113 youths were granted loans amounting to Rs 130.44 crore.
Under the scheme, so far Rs 322 crore of loan has been approved for 328 applicants of which 110 units have already begun production thus providing employment opportunities for nearly 3,000 people, said Anoop Khinchi, Managing Director, Rajasthan Financial Corporation.
Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.
