KARNATAKA STATE

FINANCIAL
CORPORATION
 INTRODUCTION

◉ KSFC was established in the year 1959 under the State Financial
Corporation Act 1951 of the Government of India.
◉ KSFC gives financial assistance to set up tiny, small, medium and
large scale industrial units in the Karnataka State.
◉ KSFC is one of the fast track term lending financial institutions in the
country with assistance to over 1,71,414 units amounting to nearly Rs
15,276 Core over the last 58 years in the State of Karnataka.
◉ KSFC is one of the robust and professionally managed State Financial
Corporations.
◉ KSFC to have assisted many industries that are internationally
recognised like:
i. INFOSYS
ii. BIOCON
 VISSION OF KSFC

◉ To reach and covers the entire state of Karnataka.

◉ To suit the knowledge of each region in terms of infrastructure and
natural resources industrialization and entrepreneurship.
◉ Specialization in the appraisal, monitoring a recovery of loans of
SSI/MSI of other new fund and the based activities,
◉ A continuous journey towards the development of SSI and
entrepreneurs.
 MISSION OF KSFC

To be a premier, self sustained financial institution for catalyzing

creating and sustaining viable investment in the small scale and
medium scale of Industry and services and the financial sectors in
the state of Karnataka State.
 QUALITY OBJECTIVES Of KSFC

The Quality Objectives of Karnataka state financial corporation are:

◉ To effectively identify and assist the entrepreneurs in establishing
successful business enterprises.
◉ To provide quality financial and related services on a continuous basis.
◉ To motivate and involve employees to achieve the set organizational
growth targets.
◉ To motivate and involve employees to achieve the set organizational
growth targets.
◉ To transform the organization to a customer centric institution
PREMISES

HEAD OFFICE-
Karnataka State Financial
Corporation
KSFC Bhavan
# 1/1 Thimmaiah Road
BENGALURU 560052
Karnataka
INDIA
Use charts to explain
ORGANISATION your ideas
STRUCTURE
 BOARD OF DIRECTORS

Composition of the Board:

◉ The director to be nominated as Chairman.
◉ Two Directors nominated by the State Government of whom one
director shall be a person who has special knowledge of or experience
in small-scale industries
◉ Two Directors nominated by the small industries Development Bank
◉ Two Directors nominated by Financial Institutions, including insurance
companies, the scheduled banks and cooperative banks
◉ One Director elected by the share holders
◉ The Managing Director
 Functions of KSFC

◉ Granting loans and advances

◉ Subscribing to or purchasing of stock, shares, bonds or debentures
◉ Accepting or discounting promissory notes and bills of exchange
made, drawn or accepted
◉ Undertaking research and surveys for evaluating or dealing with
marketing or investments
◉ Planning and assisting in the promotion and development of industries
◉ Leasing, sub-leasing or giving on hire purchase of industrial plant,
equipment, machinery or other assets
◉ Providing constancy and merchant banking services
◉ Setting up of mutual funds and undertaking assets management
activity
 Functions of KSFC (Contd.)

◉ Providing export related credit services

◉ Acting as trustee for the holders of debentures of other securities
◉ Undertaking money market related activities
◉ Providing technical and administrative assistance to industrial
concerns or any person
 Special feature of KSFC

KSFC extends term loans to new/existing units upto

Rs 500 lakhs for corporate bodies and registered
cooperative societies. Term loan upto a maximum of
Rs 200 lakhs are sanctioned to proprietary
partnership and joint hindu family concern.
 Quality Management System

The corporation decided to lower the rate of interest

to attract business and evolve strategies, this helped
the corporation to obtain ISO 9000 certification,
preliminary work in this regard was completed and
all efforts were being made to get ISO 9000
certification quickly.
 Areas of operation

◉ Extends loans to industrial concerns in Karnataka.

◉ Provided to outsider as well on certain conditions.
◉ Offices are present all over the state ,each district having
at least one.
 Operational Highlights

 Sanctions
◉ During the year 2013-14 sanctions for loans touched 909.26 cr.
◉ Cumulative sanctions reached 13135.53 cr as on 31/03/2014.

 Flow of assistance
◉ Assistance to micro and small scale enterprises.
◉ Assistance to medium scale enterprises.
◉ Assistance to transport.
◉ Assistance to other sectors.
 Schemes of KSFC

◉ Short term clean loan

◉ Assistance to technology development/modernization
◉ Credit linked capital subsidy scheme.
◉ Single window scheme
◉ Scheme for rehabilitation of sick industrial units
◉ Finance for tourism related activities
◉ Assistance to doctors and qualified medical practitioners
◉ Assistance to infrastructure
◉ Assistance for qualified professionals
◉ Others
 Thanks!

ANY QUESTIONS?