Gujarat State Financial Corporation (GSFC) incorporated on May 1, 1961 is a pioneer term lending development financial institution in the State of Gujarat. It is created under the State Financial Corporation Act, 1951 passed by Parliament. GSFC’s mandate is to provide finance to small and medium scale enterprises.
Formed in 1960, GSFC has sanctioned loans and advances of over Rs.4400 crores; out of which, it has disbursed over Rs.3,300 crores to 47,000 units in the state. This has created almost 6,83,000 jobs in Gujarat. The corporation has played a stellar role in creating new and first time entrepreneurs, has provided much needed finance to small and medium scale enterprises and has played a significant role in the industrial development and economic growth of Gujarat.
The company’s main objective is to provide financial assistance to small and medium scale new/existing industrial and service sector units all over Gujarat for acquisition of fixed assets, preliminary and pre-operative expenses, expansion, modernization, diversification etc.
GSFC has played an important role in the industrial development of the state. Till date, it has financed 47,331 units and disbursed Rs. 3,300 crore, generating employment for over 6,00,000 persons. Many units financed by it are now well established and have also graduated from small to medium and large scale.
Since the last few years, corporation is passing through financially difficult times. Due to very heavy NPA and as commercial banks are now performing similar activity has stopped advancing fresh loans since October 2001.
Currently, it is engaged in the activity of recovering dues from its borrowers and paying its lenders. One Time Settlement schemes have been introduced to expedite recovery.
Cost cutting exercise has been implemented to reduce manpower by deputing staff to various government departments and by implementing VRS.
Government has formed a high-powered committee under Chief Secretary to decide on the future of GSFC. Committee has decided to offer VRS to employees, have OTS scheme and restructure the organization.
GSFC provides the following services: