Special Correspondent

JAIPUR: The Rajasthan Financial Corporation (RFC) has earned a net profit of Rs.11.59 crore in 2007-08, which is the highest during the past nine years. It has also set a record by sanctioning loans worth Rs.438.21 crore and recovering loans amounting to Rs.377.61 crore during the financial year.

Addressing its 53rd annual general meeting here, RFC Chairman and Managing Director Atul Kumar Garg said the Corporation had achieved the targets despite “adverse circumstances” and a slump in the industrial sector. The sanctioning and recovery of loans registered an increase of 18.94 per cent and 6.74 per cent, respectively.

While the disbursal of loans amounted to Rs.266.92 crore, the RFC revived 174 sick units with a total value of Rs.65.91 crore. The Corporation registered a growth of 9.65 per cent in its standard loan portfolio during 2007-08, touching the figure of 710.87 crore as on March 31, 2008.

Mr. Garg said the RFC would speed up action during the current financial year for rehabilitation of closed units as well as those acquired by the State Government and recover loans from the Non-Performing Assets (NPA) accounts. “All attempts will be made to ensure that there is no NPA in the loan accounts sanctioned after March 31, 2000.”

For small industries

The RFC chief said the Corporation would organise industrial promotion camps at various levels during 2008-09 to provide information on the new loan schemes and rules to entrepreneurs.

At least 50 per cent of new loans to be sanctioned in the current financial year – for which the target has been set at Rs.450 crore – will be given to small and medium industries. Mr. Garg said the RFC had also launched special schemes for entrepreneurs repaying their loans on time.