The Hindu Business Line : APSFC targets Rs 675-cr sanctions this fiscal

The Andhra Pradesh State Financial Corporation (APSFC), the State-owned Corporation for promoting industrial ventures, proposes to significantly hike its financial assistance to small and medium enterprises from Rs 588 crore during the fiscal ended March 2006 to Rs 675 crore during the current financial year.

Addressing newspersons here on Wednesday during thelaunch of a `business awareness campaign', the APSFC Chairman, Mr J. Rambabu, and Managing Director, Mr Ajeya Kallam, said, the Corporation has also embarked upon an ambitious mission of reducing its non-performing assets (NPAs) to below 10 per cent by the current fiscal-end from the existing 22 per cent (Rs 294 crore).

As against the sanctions of Rs 588 crore during last fiscal, the Corporation achieved disbursals of Rs 422 crore, which is 20.8 per cent higher than the previous fiscal's disbursals of Rs 349 crore.

On the first day of the `business awareness campaign' itself, the Corporation has received proposals for setting up new industries with an estimated Rs 185 crore.

These include nine proposals for setting up engineering services industries worth Rs 40 crore, eight proposals for construction of complexes worth Rs 28 crore, eight proposals for setting up plastic and related industries with an estimated Rs 20 crore and three proposals for setting up hotels worth Rs 11 crore.

The APSFC has posted a record profit of Rs 25 crore during the previous fiscal. Further, during the fiscal, the Corporation has substantially improved its capital to risk assets ratio (CRAR) to 5.21 per cent from negative 1.96 per cent.

The Corporation has also recovered Rs 482-crore dues during this fiscal as against the Rs 451 crore of recoveries in the previous fiscal.

Mr Rambabu and Mr Ajeya Kallam said the APSFC was working out modalities to emerge as the leading player in industrial finance while successfully competing with commercial banks.

They said the Chief Minister, Dr Y.S. Rajasekhara Reddy, at a recent meeting asked the APSFC to aim for a much bigger target and convert itself into a universal bank for providing all financial products and services to customers under single roof. The Chief Minister has also directed the officials to expedite the work on allotting 100-acre land to APSFC on the city outskirts for setting up a modern industrial estate incorporating all facilities and services, they said.

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