SUPPORT OF GOVERNMENT OF KARNATAKA TO KSFC
Bengaluru: During the 61st Annual General Meeting of Karnataka State Financial Corporation (KSFC), Dr. Ekroop Caur,I.A.S., Managing Director addressed the shareholders of the Corporation through video conferencing on 30th July 2020, due to the Covid pandemic. She shared salient aspects of the audited Annual Accounts for the year ended 31st March 2020 to the share holders.
PERFORMANCE OF KSFC FOR THE YEAR 2019-20: During the financial year 2019-20, the Corporation sanctioned term loan assistance to the tune of Rs.667.81 crore to MSMEs, disbursed an amount of Rs 727.90 crore. The recovery of loans was to the extent of Rs. 720.85 crore. The profit for the Financial Year 2019-20 is Rs.44.92 crore. The percentage of net NPA reduced to 5.12% during 2019-20 compared to 6.09% during last year. Since inception the Corporation has sanctioned Rs.17,884.72 crore to as many as 1,74,217 units in the State of Karnataka.
The Corporation since inception has assisted more than 21,700 Scheduled Caste & Scheduled Tribe Entrepreneurs amounting to over Rs.2000 crore. The Corporation has so far assisted more than 30,000 women entrepreneurs amounting to Rs.4243.67. As many as 41,000 entrepreneurs belonging to Backward classes and Minority Communities have been financially assisted by the Corporation with an amount of Rs.1748.40 crore. First Generation entrepreneurs were sanctioned an amount of Rs.164.70 crore so far.
The above achievement is the result of a series of policy initiatives undertaken by the Corporation and implementation of flagship schemes of the Government of Karnataka for SC&ST, Women Entrepreneurs and Micro & Small Enterprises (MSEs) promoted by Manufacturing Enterprises promoted by all categories of entrepreneurs at net rate of interest of 4% payable by them and balance paid by the GoK as Interest Subsidy.
During the year, the Government of Karnataka provided an equity capital of Rs.100.00 crore and interest subsidy of Rs.71.50 crore under various schemes operated from KSFC. Under Textile Grant Scheme for Scheduled Caste and Scheduled Tribe Entrepreneurs, a grant amount of Rs.20.14 crore was released by Government of Karnataka. Soft Seed Capital of Rs. 27.02 crore as equity for SC & ST entrepreneurs has been received by the GoK during 2019-20.
PLANS FOR FY 2020-2021: The financial year 2020-21 is a year where in the economy has to face the “Challenges of Covid-19”.The financial year 2020-21 for the Corporation also will be a mixed growth due to the volatility in the economy of the State. Government of India and Government of Karnataka are working out various reliefs and concessions for MSMEs to recover from the COVID-19 blow.
The focus of KSFC for the financial year 2020-21 is on creation of a quality portfolio by keeping the modest target for sanction at Rs. 600.00 crore and to reach the benefits of flagship Interest Subsidy / Subvention Schemes of the Government of Karnataka to MSEs promoted by various sections of the society across the State. The modified MSME definition w.e.f., 1st July 2020 facilitates numerous MSMEs in manufacturing and service sectors to avail the benefits of the Interest Subvention Scheme of Government of Karnataka, to be re-introduced during 2020-21. The focus of KSFC will also be on further reduction in NPAs and increasing operating profits says press release