A Study on Financial Performance of APSFC
- July 2, 2018
- Posted by: RSIS
- Category: Management
International Journal of Research and Scientific Innovation (IJRSI) | Volume V, Issue VI, June 2018 | ISSN 2321–2705
A Study on Financial Performance of APSFC
R.V. Sankara Rao
*Research Scholar, Acharya Nagarjuna University, Guntur, Andhra Pradesh, India
Abstract: State Financial Corporations were established in the states under the Central Act, viz., the State Financial Corporation Act 1951, with the basic objective of promoting and developing small scale industries in respective states with a special focus on spreading industrial culture in the rural and semi urban and backward areas of the state. These Corporations are owned by the respective state governments jointly with IDBI and they are functioning under the administrative control of the state governments.
In this paper an attempt is made to examine the financial performance of APSFC in terms of sanctions, disbursements year-wise, branch-wise, Recovery of principal and interest amounts and growth rates to analyse the APSFC performance in terms of these indicators over the period.
Key Words: Financial Performance, Sanctions, Disbursements, Growth Rates, Recovery of Principal.
I. INTRODUCTION
Andhra Pradesh State Financial Corporation (APSFC) was established in 1956 with the main objective of extending financial assistance for setting up industrial units in Tiny, Small Scale, Medium Scale sectors & Service Enterprises. Also for providing financial assistance to existing units of various sectors. APSFC is jointly promoted by IDBI and Government of Andhra Pradesh.
APSFC an ISO 9001-2000 Organisation offers liberal financial assistance for acquiring fixed assets like Land, Buildings & Machinery, and Working Capital Term Loans for existing units and Seed Capital Assistance to smaller projects. The term loan assistance from the corporation is available up to Rs.500 Lakhs per project and is offered through various Schemes of assistance to suit to the requirements of the individual project.
APSFC offers financial assistance up to Rs.2000 Lakhs on case to case basis. The Corporation is also extending financial assistance in joint financing with SIDBI for larger projects. The Corporation is undertaking distribution of insurance products (General & Life) and sale of Government of India Relief bonds. APSFC also accepts Fixed Deposits both Cumulative and Non-Cumulative in nature.
