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Decentralisation has helped KSFC revive its fortunes: MD

Ktaka adopts AP, TN model in simplifying lending system
Last Updated 26 July 2012, 17:20 IST

Managing director of Karnataka State Financial Corporation (KSFC) M Madan Gopal on Thursday said that the lending system has been decentralised thus reviving the fortunes of the corporation.

He was speaking after inaugurating a day-long business meet organised by the KSFC to interact with the entrepreneurs, at a hotel on KRS road in the city.

Madan Gopal said, in the decentralised system that is implemented from April 1, the local branches of the corporation have been vested with powers to disburse loan from up to Rs 20 crore.

The local officers will also complete the procedures pertaining to technical scrutiny, approval among others. It’s only when the role of head office is warranted, then the officers at the top level in Bangalore will intervene.

Recalling the efforts he took to streamline the system, Madan Gopal said decentralised system is in place in neighbouring states like Andhra Pradesh and Tamil Nadu.

Besides, he had also toured the States like Assam, Delhi and Rajasthan to study the system. 

Buoyed by Andhra Pradesh and Tamil Nadu’s simplified lending system, it was replicated in Karnataka too. The work began in phases from January and came into reality from April.

This also helped in attracting entrepreneurs from the districts of northern part of the State, earlier who were not on the list of prospective investors. There is a demand for loan in the range of Rs 11 crore to Rs 15 crore from Bagalkot, Dharwad, Belgaum and Gulbarga regions.

According to the growth plan of 2009-14, by the end of 2012, the standard assets can be calculatd at Rs 1,500 crore. It has already reached Rs 1,400 crore and the improvement rate of standard assets in this year alone is Rs 220 crore.

The officer also asserted that small and medium enterprises (SME) play a key role in the development of a region in particular.

There is also a demand to open branches at Yadgir and Chikkaballapur, besides for an additional unit in Bangalore.

Plans

Madan Gopal said that KSFC is planning for joint infrastructure development to garner revenue, apart from lending. The surplus amount will flow into the kitty of the corporation and it will again enable both the lender and entrepreneur.

Earlier, general manager, KSFC (Mysore circle) G Nagaraja said in the simplified system, it takes a minimum of seven days and maximum of 20 days to fulfil the related procedures.
Executive director D Kattimani, assistant general manager, G V Chandrakumar and others were present.

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(Published 26 July 2012, 17:19 IST)

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