Staff Correspondent

It is striving to bring down NPAs to 5 per cent

Non-performing assets highest in Gulbarga zone KSFC's profit touches Rs. 2.74 crores with a total recovery of Rs. 582.12 crores

Belgaum: The Karnataka State Financial Corporation (KSFC) has cleared nine projects involving Rs. 12 crores at its Project Clearance Committee meeting held under the chairmanship of its Managing Director B.R. Jayaramaraje Urs here on Wednesday.

KSFC Executive Director Netaji Ganesan and senior officials of the Belgaum zone were present.

Addressing presspersons here, Mr. Urs said the proposals that have been cleared include a commercial complex, group housing, residential apartments, industrial valves, foundry, oxygen plant, rice mill and a diesel generator servicing centre.

He said the KSFC is striving to bring down cumulative non-performing assets (NPAs) from 62 per cent before the commencement of the reformation process in 2003-04 to 5 per cent at the rate of 10 per cent every year.

Non-performing assets are highest in the Gulbarga zone, while the figures are not threatening in the Belgaum zone. However, effective measures have helped in maintaining non-performing assets around 5 per cent since 2003-04.

The KSFC has taken steps measures to show "exit door" to NPAs through one time settlement (OTS), debt restructuring and obtaining court decrees in respect of wilful defaulters, besides applying the provisions under Section 29 of the KSFC Act.

He said Rs. 302.59 crores was involved for consideration under OTS of which, cases amounting to Rs. 222 crores have been settled. He expressed the hope that the remaining cases involving Rs. 43 crores will be settled soon.

So far, the KSFC has written off Rs. 24.3 crores of principal amount and waived the interest component of Rs. 297.50 crores.

Acknowledging that the KSFC faced a bad time from 1998 to 2003, he said reforms have helped in putting it back on track and it registered a net profit of Rs. 87 lakhs during 2003-04.

In the following year, the profit touched Rs. 2.74 crores with a total recovery of Rs. 582.12 crores.

During the current financial year, the KSFC has set a target of Rs. 315 crores of which loans to the tune of Rs. 203 crores have been sanctioned and Rs. 130 crores disbursed till January 31.