Companies

Covid-19 impact: Karnataka Financial Corporation sets modest ₹600-crore target for sanction in FY2020-21

Our Bureau Bengaluru | Updated on August 18, 2020

Karnataka State Financial Corporation (KSFC) has set a modest ₹600-crore target for sanction in FY2020-21.

Addressing the 61st Annual General Meeting of KSFC shareholders, Ekroop Caur, Managing Director of the corporation said: “The financial year 2020-21 is a year where the economy has to face the challenges of Covid-19. It has been a year of mixed growth for the Corporation, too, due to the volatility in the economy of the State. The Central and State governments are working out reliefs and concessions for MSMEs to recover from the Covid-19 blow.

“The focus of KSFC for FY2020-21 is on creation of a quality portfolio by keeping the modest target for sanction at ₹600 crore and to reach the benefits of flagship interest subsidy/subvention schemes of the Karnataka government to MSMEs.

“The modified MSME definition from July 1, 2020, facilitates numerous MSMEs in manufacturing and service sectors to claim the benefits of the Interest Subvention Scheme of Karnataka government, to be re-introduced in 2020-21. The focus of KSFC will also be on further reduction in NPAs and increasing operating profits,” she added.

During FY2019-20, KSFC sanctioned term-loan assistance to the tune of ₹667.81 crore to MSMEs and disbursed an amount of ₹727.90 crore. Recovery of loans was to the extent of ₹720.85 crore. The Corporation’s profit for FY2019-20 stood at ₹44.92 crore and the percentage of net NPA reduced to 5.12 per cent during 2019-20 from 6.09 per cent during last year.

Since inception, KSFC has sanctioned ₹17,884.72 crore to as many as 1,74,217 units in Karnataka and has assisted more than 21,700 Scheduled Caste and Scheduled Tribe entrepreneurs with loans amounting to over ₹2,000 crore.

The Corporation has so far assisted more than 30,000 women entrepreneurs with loans amounting to ₹4,243.67 crore. As many as 41,000 entrepreneurs belonging to Backward Classes and minority communities have been financially assisted by the Corporation with an amount of ₹17,48.40 crore.

Published on August 18, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor