Loans worth Rs 23 crore sanctioned till Jan 2020, recoveries escalate by 32% from past year

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Financial Commissioner Finance, Dr. Arun Kumar Mehta today chaired the 242nd Board of Directors meeting of the State Finance Corporation here. The meeting reviewed in detail the working, performance and outcomes of the Corporation made during the period of April 2019 to January 2020.

The Directors who were present in the meeting include S.K Bhat, former Senior President JK Bank, Sat Paul, Senior Divisional Manager, LIC of India, Sanjeet Kumar Verma, Manager SIDBI, Jammu.

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The meeting was also attended by DG Budget, Mohammad Yaqoob Itoo, Managing Director SFC, Mohammad Farooq Thokar, Deputy Secretary Finance, Vishal Sharma and other senior officers of State Finance Corporation.

During the meeting, the Financial Commissioner directed the Board to constitute a sub-committee for supervision and accelerating the process of computerisation of all the business of the Corporation. He advised the officers to complete the process within a period of one week.

It was said that NIC Jammu has been entrusted with the job of computerisation of SFC. The process is currently at the advanced stage of customisation and the same would fully be put to use in the coming days, the meeting was informed. The Board was further apprised that the business of the corporation would fully get digitized once the software is ready to use.

On the occasion, Dr. Mehta also stressed on the officers to focus on reducing the amount of Non-Performing Assets (NPAs) in the Corporation and utilize the services of employees fully in realising the set goals. He suggested exploring other legal ways and means to recover these NPAs within the shortest possible time.

He urged the officers to improve the recovery of advances further and also enhance their efforts in auctioning the properties taken over by the Corporation from the borrowers. He suggested looking for successful models across the country to run the business of the Corporation profitably.

The meeting was informed that recoveries to the tune of Rs 18.83 crore were made till January this year, registering a growth of about 32% from the corresponding period of last year.

The Board was also informed that loans worth Rs 22.78 crore were sanctioned to the borrowers by the Corporation. The loans include Rs 10.12 crore under normal financing and 12.66 crore under National Minority Development Finance Corporation. The meeting was informed that 516 cases were sanctioned which include loans provided to MSMEs, Education sector, Transport sector, Hotels and Employees.

Regarding the sanctions made earlier by the Corporation, the Board noted that such sanctions would be subject to the regulatory compliance, internal policy guidelines and adherence to discretionary powers mandated under the SFC Act.

The Board resolved to bring on agenda the detailed review of lending and recovery in the next BoD meeting. It also resolved to rationalise the staff of the Corporation to make it financially viable.