Special Correspondent

Posts record profit of Rs. 25 crores in previous year

APSFC aims to bring down NPAs to less than 10 p.c.Capital adequacy ratio increases from negative figures to 5.21 p.c. Aims at becoming biggest player in the sector

HYDERABAD: Andhra Pradesh State Financial Corporation, the State-owned body for promotion of industrial ventures, is planning to hike its financial assistance for small and medium enterprises from Rs. 588 crores to Rs. 675 crores this year.

It has embarked on an ambitious plan to reduce non-performing assets from 22 per cent, amounting to Rs. 294 crores, to below 10 per cent by the year-end. During 2005-06, the Corporation disbursed Rs. 422 crores, 20.8 per cent higher than the previous year's Rs. 349 crores.

Proposals

Speaking to reporters on the lines of the launch of the `business awareness campaign' on Wednesday, APSFC Chairman J. Rambabu and Managing Director Ajeya Kallam said the corporation had received proposals for new industries at a n estimated Rs. 185 crores on the first day of the campaign itself.

The corporation achieved a record profit of Rs. 25 crores during the previous year while the capital adequacy ratio that was negative increased to 5.21 per cent. The corporation could recover Rs. 482 crores dues during the period against the Rs. 451 crores recovered during the corresponding period in the previous year.