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RFC passes budget with 13 crore surplus revenue

JAIPUR: The Rajasthan Financial Corporation has passed its budget for 2009-10 with a revenue surplus of Rs.13 crore and set the targets for sanctioning loans worth Rs.525 crore, realising loans valued at Rs.425 crore and disbursing fresh loans of Rs.400 crore during the financial year at its 502nd meeting here.

The Corporation’s Board of Directors noted that Rs.200 crore of the Rs.340 crore disbursed as loans during the previous year had gone to small and medium industries, while loans worth Rs.20 crore had been disbursed to units in the hotel and tourism sector.

The Corporation announced a 0.5 per cent decrease in the rate of interest on all of its loan schemes and stated that all loans exceeding Rs.5 crore would be reviewed every 12 months and the interest rate applicable at that point of time would be charged on them.

The Corporation’s Managing Director Atul Kumar Garg said it would also give an additional concession of 0.25 per cent in the interest rate to its good borrowers and reduce the processing charges from 1 per cent to 0.75 per cent besides extending the loan period from five years to seven years. The Board of Directors approved the loaning and loan realisation policies for 2009-10 while laying emphasis on providing a higher loan assistance to the small and medium industrial units. The scheme for one-time loan finalisation was also extended till March 31, 2010. Mr. Garg said the Corporation had made significant achievements in all major fields despite the current recession. He said the Corporation was encouraging decentralisation of its functions and had authorised 12 of its units to sanction loans up to Rs.1 crore on their own.

Mr. Garg said the Small Industries Development Bank of India (SIDBI) had announced conversion of its loan worth Rs.9.60 crore given to the Corporation into equity share capital in view of the latter’s achievements.

Similarly, the State Government has approved the conversion of its loan of Rs.13.95 into share capital and given its consent for renewal of a memorandum of understanding signed between the Corporation and SIDBI in 2003.

The Corporation’s Executive Director Pawan Arora, Directors A.K. Bharagava, A. Grover, N. K. Padhi, R. K. Agrawal, Ashok Haldia, Kamal Mehta and Vinod Juneja, financial consultant Suresh Singhal and General Manager (Development) Rajendra Vijay attended the meeting.

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