Meeting with Secretary (FS), MoF, GoI on Sept. 23, 2003

A delegation from COSIDICI led by Dr. R.N. Trivedi, IAS, the then CMD, UPFC, Kanpur and comprising - Dr. (Mrs.) Joyce Shankaran, IAS, MD, MSFC, Mumbai; Shri V. Umesh, IAS, MD, KSFC, Bangalore; Shri Chaman Kumar, IAS MD, GSFC, Gandhinagar; Shri Subrata Biswas, IAS, MD, KFC, Thiruvananthapuram; Shri S.K. Sen, IAS, MD, WBFC, Kolkata; Shri Yaduvendra Mathur, IAS MD, RFC, Jaipur; and Shri K.K. Mudgil, Secretary General, COSIDICI held a meeting with Shri N.S. Sisodia, Secretary (Financial Sector), Ministry of Finance, Govt. of India on September 23, 2003 to discuss the current financial crisis faced by SFCs and the urgent need for their debt restructuring. All the problems of SFCs pertaining to their high cost of funds, high NPAs due to priority sector lending, inability of SFCs to service the high cost of bonds etc. were placed before the Secretary. It was suggested that as these SFCs are servicing the SME sector which occupies an important place in the country’s economy, it becomes imperative that they be treated at par with other financial Agencies. They should, therefore, be recapitalised on the lines of the commercial and rural banks. Their cost of funds should also be brought down and their SLR bonds rolled over for 10 years. It would strengthen these Financial Institutions (FIs) and give them a much needed relief to work efficiently and productively.

Shri Sisodia gave the delegates a patient hearing and assured them that he would look into the matter and initiate appropriate action.

Training :

The third integrated training programme for officers of SLFIs was organised from 22nd to 27th September, 2003 at College of Agricultural Banking (RBI), Pune. The programme was attended by 15 officers of our Member Corporations and was found to be very useful.

The fourth on-site training programme was held at the head office of Karnataka State Financial Corporation at Bangalore from 6th to 9th October, 2003. The course was well attended by 30 officers as against the optimum number of 25 participants. As in the case of the previous three courses held at Thiruvananthapuram and New Delhi this course was also much appreciated and the course content found to be very useful by the participants.

One of the true tests of leadership is the ability to recognise a problem beforeit becomes an emergency