Date:04/05/2005 URL: http://www.thehindubusinessline.com/2005/05/04/stories/2005050400851900.htm

Back APSFC net profit up 30% at Rs 13.15 cr

Our Bureau

"We will adopt a new business plan and innovative strategies for improving the scale and scope of business."

Hyderabad , May 3

THE Andhra Pradesh State Financial Corporation (APSFC) has recorded a profit after tax of Rs 13.15 crore during 2004-05, up by 30 per cent, as against Rs 10.10 crore in the previous fiscal.

During the year, the Corporation's sanctions stood at Rs 464 crore as against a target of Rs 453.48 crore. While disbursements stood at Rs 348.87 crore, recoveries crossed the Rs 450-crore mark.

For the current year, the APSFC has targeted to sanction Rs 500 crore and disbursements to the tune of Rs 400 crore. On the recoveries front, it has set a target of Rs 500 crore.

Addressing a press conference here on Tuesday, Mr M. Gopalakrishna, Chairman of APSFC, said the Corporation clocked a turnaround in just two years. "The Corporation recorded a loss of Rs 13.13 crore in 2001-02 and now the net profit was Rs 13.15 crore," he said.

He said it would revamp its operations during its Golden Jubilee this year. "We will adopt a new business plan and innovative strategies for improving the scale and scope of business," he said.

As part of the plan, the Corporation would introduce `Profit and Cost Centre' management system in 2005-06. It would enter into memorandum of understandings with Branch Managers to improve productivity. Each of them would be given a business, other income and profit target.

The net non-performing assets (NPAs) during 2004-05 were put at Rs 370 crore. "A good part of NPAs are still collectible," Mr Gopalakrishna said.

He said the Corporation targeted to reduce the NPAs by five per cent from the present 22 per cent.

Sector wise, the small-scale sector got the lion's share of 55 per cent, while the medium industries segment secured 18 per cent.

Mr Gopalakrishna said the financial assistance extended by the Corporation in 2004-05 acted as a catalyst and triggered industrial investment of over Rs 700 crore. This, in turn, would generate an output worth Rs 1,900 crore.

The proposed APSFC's consortium with Small Industries Development Bank of India and commercial banks would commence operations this year.

The consortium has sought to finance bigger projects in small and medium enterprises. "This would help some SMEs upgrade their scale of operations," he said.