The State Financial Corporations (SFCs) are an important part of the country's financial sector and they fulfil an important role of promoting and developing industry in all corners of the country. However, in the wake of financial sector reforms and economic liberalisation, SFCs have been facing stiff competition from the other financial entities. Faced with the twin challenges of change and competition, APSFC had to rethink its strategy. It improved its competence, competitiveness and customer responsiveness leading to improved performance and productivity as well as profitability.

  • Below is given the average performance in Key Areas during 1995-1998 :
  • Sanctions : Rs.189 crore
  • Disbursements : Rs.120 crore
  • Recoveries : Rs.189 crore
  • Total Portfolio : Rs.732 crore
  • Standard and
  • sub-standard : Rs.285 crore
  • Personnel and administration expenditure in 1998 was Rs.13.48 crore
  • Income from margin - Rs.5 crore.
  • NPAs - 61% [Gross].
Some of the steps taken by APSFC for improving its performance since then are as under:
  • Sensitization of Senior Management on the kind of operations that will steer APSFC through the bad time;
  • Demystifying the financial health to each and every employee and initiating measures to motivate them;
  • Restoring customer confidence by focusing on customer relationship management;
  • Improving Business Performance
  • Increasing Good Portfolio
  • Reducing Bad Portfolio
  • Internalising the systems
  • Improving per employee productivity.
Measures taken by APSFC for Building performance :

On Business Front :

  • Corporate plan drawn for 5 years;
  • Conducted IDEAS at potential centers;
  • Lead times fixed and monitored;
  • Introduced Customer friendly schemes;
  • Introduced "Parishramika Vijetha" Awards for encouraging Good Entrepreneurs;
  • Customer feedback was introduced;
  • Procedures simplifed.
On Organisational Front :
  • Budgets prepared for every item of revenue expenditure;
  • Introduced Profit center concept;
  • Encouraged low productive employee to go on VRS
  • Strength reduced from 729 to 550
  • 50% of strength of sub-staff reduced
  • Reduced Head Office strength and strengthened the Branches by categorising branches into A, B & C category;
  • Re-organised the operational zones based on the Business Performance;
  • More delegations to Field Staff;
  • Implemented ISO for Entire Corporation;
  • Implemented 9002:1994 in March, 2001
  • Upgraded to 9001:2000 in March, 2002
  • Introduced Awards for Branches and Employees for Best Performance to trigger healthy competition
  • Conducted training for more than 300 employees. Every 2nd Thursday of the month is a training day;
  • Interacted with all employees personally and also wrote DO letters to get feedback;
  • Online computerisation taken up to improve the productivity in business process and also the employee productivity.
Customer perception : 

Year 2000 :

  • 50% felt APSFC's approach is professional and services are good.
Year 2001 :
  • 81% felt APSFC's approach is professional and services are good.


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